With the pandemic, millions of homeowners are having trouble making their mortgage payments. By July 2020, at least 4.1 million homeowners had forbearance plans in place (postponement of mortgage payments).
If you are in a forbearance plan or trying to request one from your lender, there are 4 important things you must ask and find out.
1. Terms of your forbearance
When do you have to repay the missed payments? Do you have to pay them all at once when the forbearance period is over or are they tacked to the end of the loan. Make sure the terms are in writing.
2. Credit:
During forbearance, missed payments should not be negatively reported on your credit. If you were in a forbearance plan, check your credit and make sure that your lender is NOT reporting you late or in default.
3. Status of forbearance and mortgage loan:
Mark your calendar to call your loan servicer well before your forbearance period ends. Make sure you’re clear about the terms of your forbearance plan (start and end date, expectations for repayment, etc.) Ask about the status of your account, including the current balance. Make sure you’re not being marked as ‘late’ or ‘delinquent’ on any payments deferred under your forbearance plan.
4. Taxes and insurance:
Property taxes and insurance are typically paid in one monthly payment. If you are not making payments because you are in a forbearance, you need to know whether your lender or servicer is still paying your taxes and insurance or if you are responsible. If not, your home could still be at risk for foreclosure by the county. Check property tax status with the county. Call insurance company and make sure payments have been made by the servicer.
These are scary times and with so many homeowners having trouble making their mortgage payments, and having to request assistance, lenders and servicers will make errors.
Contact An Attorney
It is important to advocate for yourself; keep your servicer to its word.
Call us or contact us online if you believe that your lender or mortgage servicer has failed to comply with your agreement.
Rachel Khirallah
Rachel E. Khirallah is the founder of Khirallah, PLLC. She was admitted to the Texas Bar and U.S. District Court, Northern District of Texas in 2005 after graduating from Texas Tech University School of Law, and admitted to the U.S District Court, Eastern District of Texas in 2006.
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