According to the Mortgage Bankers Association (MBA) mortgage servicers provided forbearance to approximately 8 million borrowers since March 2020, the onset of the COVID-19 pandemic. If your mortgage forbearance period is ending, and you’re facing financial difficulties, you have a few options on recovering after forbearance:
Request a Forbearance Extension:
- Call your lender to ask for an extension.
- If they can’t extend forbearance, discuss alternatives to avoid defaulting on your mortgage.
Make a Deferred Payment:
- Ask if you can postpone missed payments until you sell your home or refinance.
- You’ll settle the owed amount when the mortgage period concludes.
Make a Payment:
- Address short-term cash issues to stay in your home.
- Forbearance isn’t forgiveness; you’ll have to repay skipped payments.
- Options include a lump sum payment or a repayment plan after forbearance.
Modify Your Loan:
- Check if you qualify for a loan modification to make payments more affordable.
- Gather financial proof and contact your lender to request a modification.
- If denied, explore the possibility of an appeal.
Sell Your Home:
- Selling can help if you’re willing to relocate.
- Use equity to pay off your existing mortgage or fund a down payment on a more affordable home.
- Programs like Cash for Keys or a short sale could assist in the process.
Remember, staying in communication with your lender is crucial to explore these options and prevent credit damage or potential home loss/foreclosure.
For any questions on foreclosures or different lending options, please reach out!
NELLIE DALLMAN, Results Home Mortgage
Chief Operating Officer | NLMS #2419177
763.218.2487
nellie.dallman@resultshomemortgage.com
Get pre-approved!
Nellie has over 15 years of experience in the mortgage, title and banking industry as well as being a Wells Fargo Leaders Club recipient. Nellie can speak and lead from her many experiences. Her enthusiastic management style motivates others towards success. She represents Results Home Mortgage, LLC with professionalism, integrity and confidence. Nellie is committed to building long-lasting business relationships as well and focusing on the continued growth of the company.