Did You Go Into Forbearance?
Here's what you need to know about forbearance and conventional loans.
Today we’re joined by Sarah Hubbard to talk about a dirty word in real estate: forbearance. She’ll explain everything you need to know about this process and what it means for you.
During the pandemic, homeowners were allowed to go into forbearance. In this process, they would defer their mortgage payments with no negative consequences. Now that this relief has ended, a lot of people have questions.
People in forbearance with conventional loans could either pay the deferred amount in full or have it added to the end of their mortgage. If someone added the deferred amount to the end of their mortgage, their monthly payment likely went up since the amount owed on their loan increased.
If you are trying to buy or refinance, know that none of your properties can be in forbearance. If you deferred your payments, you have to make three consecutive payments before you can secure further financing.
This process has a lot of moving parts, so if you want to ask Sarah any questions, call her at (908) 433-7647 or email [email protected]. As always, call or email us with questions you might have. We are always willing to help!