Considering pandemic mortgage relief/forbearance? Ask your lender or loan servicer these questions first
As the pandemic progresses many homeowners of color have considered taking advantage of financial assistance programs, like forbearance. However, before you take advantage of any programs, there are a few questions you should ask your lender.
So what questions should you be asking your lender about possible assistance programs?
- What sort of programs are you eligible for?
- What will the programs do for your loan?
- How will this affect your insurance and taxes?
Let’s break this down…
What sort of programs are you eligible for? For those who have a federally backed loan there are a few types of assistance programs, like deference and forbearance. To know which type of program you qualify for you’ll need to contact your lender.
What will the programs do for your loan? It’s important to know exactly how the terms of your assistance program will affect your loan.
For instance, will your payments be due in a lump sum after your forbearance or deference is over? Or will the extra payments be added to the end of your loan? Or will your entire loan have to be restructured? These are vital questions that must be answered before any assistance programs are selected.
How will this affect your insurance and taxes? If you do escrow with your taxes and insurance as part of your mortgage, then you need to know upfront if your taxes and insurance will be affected.
HomeFree-USA can help you get the answers to these questions and more!
HomeFree-USA understands how important it is to get clear answers to these questions. They’ll affect your future for years to come if not handled properly.
We want to make sure that you get the chance to discuss this with your mortgage lender directly. That’s why we have information sessions like Understanding Your Mortgage.
Understanding Your Mortgage is specifically designed to help you understand the tricky business of mortgage assistance. HomeFree-USA wants to give you direct lines of communication with your lender so that you can make full use of the information available.
Forbearance could be a good option for struggling homeowners, and if executed correctly it can be a big help. Find out if mortgage assistance is right for you at HomeFree-USA’s Understanding Your Mortgage information session.
For more information visit, http://homefreeusa.org/mortgagerelief