COVID hit a lot of people hard, both personally and financially. If you needed to exercise Mortgage Forbearance, here are some tips to help you get back to financial wellness.

1. Don’t Lose Hope! Forbearance is there for people who need to use that option. Conversely, do not use forbearance if you do not need it.

2. Purchasing or Refinancing a Mortgage after Forbearance is Possible.  The Cares Act prevented lenders from reporting late payment histories to the credit bureaus.  That said, lenders will want to see that you have been able to make your payments after the forbearance, before refinancing, or purchasing another home.  Most loan programs require you to make 3 timely payments after the deferment period.

3. Options: How your Mortgage Forbearance is handled is dependent on your type of loan and lender. Lenders will review your present financial situation to see what options may work for you.

Here are some examples:

• Modifying the loan terms through a loan modification. This may mean that a lender adds the unpaid mortgage payments to the principal owed on the mortgage or extends the term of your loan.
• Adding a second mortgage to the property for the missed payments.
• Requiring the borrower to make up missed payments either all at once or with an increased monthly payment over time.

4. When Getting Back on Your Feet, Focus on One Bill at a Time.  For many people, this means securing their living arrangements, which is their home mortgage.  Once that is achievable, then start working on your other responsibilities. 

5. If You are Self-Employed, be Prepared for Additional Scrutiny! The pandemic may impact even long-established businesses, so lenders are considering fluctuations in income and the probability of continued income.

No matter your situation, Greenway Mortgage is here to answer all your questions.