What to do if you can’t pay the mortgage

Dated: October 22 2020

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What to do if you can’t pay the mortgage

When the coronavirus pandemic began to hammer the U.S. economy, many states forbade lenders from pursuing foreclosures. Meanwhile, Congress passed the Coronavirus Aid, Relief and Economic Security Act, which lets borrowers off the hook for up to a year. How forbearance works:

  • You have to ask. Borrowers must request forbearance. Don’t stop making payments without checking with your lender or servicer.
  • Qualifying for forbearance is relatively easy. Lenders aren’t demanding proof of hardship.
  • There’s no penalty. Missed payments during forbearance won’t hurt your credit score, and you won’t accrue late charges.
  • You still owe the money. Forbearance pauses payments by extending the length of your loan. After the grace period ends, you’ll resume making regular payments, but the term of your loan will be extended to include the payments you missed.
  • Most loans qualify. While forbearance is mandatory for federally backed loans, including FHA loans, many lenders have voluntarily extended the same terms for loans that aren’t backed by the federal government.

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Ted Daigle

About Ted Daigle – Realtor Growing up in Church Point, LA instilled values of hard work and dedication, which has carried over into every aspect of his life, including real estate. This Lafayette r....

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