In these challenging times, we’re here to answer your questions.
These days, your house is more than your home. It’s your home base, your safe spot, your office, your kids’ classroom, your entertainment space. Now more than ever, it’s the center of your life. If your situation has changed or if you’re out of work right now due to the Coronavirus Pandemic, the last thing you want to think about is not having enough money to pay for your home. Thankfully, you have options, but they can be confusing. That’s why we’re here: to help you understand your options right now-and figure out which option is best for you later, based upon your individual financial situation.
What help can I get now?
Under the CARES Act, you are eligible for a forbearance if you have a federally backed mortgage loan. It’s the first option if you are experiencing a hardship due to the Coronavirus and meant to help you before you fall behind. As a borrower, you may request a forbearance on your federally backed mortgage.
- A forbearance is a temporary suspension of your monthly mortgage payments.
- It does not mean your payments are forgiven.
- It’s important for you to know that once the forbearance period has ended, the suspended portion is due—but you will not have to pay it back all at once. You have options.
- The CARES ACT allows a borrower to have an initial forbearance period of 180 days regardless of their delinquency status. After that, if you’re still financially impacted by the Coronavirus Pandemic, you can extend up to an additional 180 days.
It’s not always easy to see whether your mortgage loan is federally backed. Or, in other words, who owns your mortgage loan. Many mortgage loans are sold and the servicer you pay every month may not own your mortgage.
There are some online tools you can use to look up who owns your mortgage:
- Fannie Mae: https://www.knowyouroptions.com/loanlookup
- Freddie Mac:https://ww3.freddiemac.com/loanlookup/
Loans insured or guaranteed by FHA, VA, or the USDA are also federally backed loans.
When might deferral be an option for me?
A deferral program was just announced which will go into effect on July 1, 2020 for Fannie Mae and Freddie Mac federally backed loans. It is only available after your financial hardship has ended or the forbearance periods are exhausted. A deferral enables you to avoid having to pay your suspended mortgage payments all at once typically by adding a non-interest bearing loan at the end of your mortgage, but repayable if you sell your home. Depending on your individual financial situation, we will work with you on available options. Other options available also depending upon your financial situation and the type of loan you have include:
- A reinstatement, which means paying what you owe on missed payments if you can afford it.
- A repayment plan, which means spreading what you owe on missed payments over a short period of time.
- A loan modification, which modifies the terms of your loan permanently in order to change your payment amount.
How will visiting www.loanadministration.com help if I have questions during this time?
The website is your key resource for information, guidance, and tools. It’s also the place where you may request a forbearance if you have a hardship due to Coronavirus. To get started, just visit www.loanadministration.com, complete and submit the request form.
If you’re already on a forbearance plan, there is nothing more to do right now. We will be in touch with you to discuss your options before your forbearance ends.
In the meantime, please stay safe and stay well.
Confirmation of approval!
Thank you for reaching out to us about mortgage payment assistance options. This email confirms that your forbearance plan is in effect. A forbearance plan is a temporary suspension of your mortgage payments, in this case, due to the Coronavirus Pandemic. It is intended to allow you the time and flexibility to manage the challenges affecting your ability to pay your mortgage.
We are here to assist you now and when your hardship is over.
The federal CARES Act (the Coronavirus Aid, Relief, and Economic Security Act) offers mortgage assistance options for borrowers who have federally backed mortgages and who are experiencing financial hardship as a result of the Coronavirus. The mortgage assistance option available is forbearance.
Prior to the end of your forbearance period we will work with you to determine your best options based on your financial situation. These may include:
If you are still impacted by the Coronavirus Pandemic:
1. Extension of the Forbearance Plan: The ability to extend the forbearance period. There will be no additional fees, penalties or additional interest (beyond scheduled amounts) added to your account, if your hardship continues.
If your financial hardship has ended, there are additional options available to assist you with the suspended payments:
1. Loan Reinstatement: Bring your mortgage current by repaying your suspended payments in one lump sum. Please see the total amount due on your statement.
2. Repayment Plan: The total amount of suspended payments is spread out over future payments until the full amount is repaid. *
3. Loan Modification: Permanently change the terms of your mortgage to bring it current. *
4. Partial Claim (for FHA-insured loans only): A Partial Claim is a no interest junior loan secured by your property. No payments are due on the partial claim until the payoff, maturity or acceleration of your insured mortgage, including for the sale of your property or a refinancing, or the termination of FHA insurance on your mortgage. If you are not eligible for the COVID-19 Standalone Partial Claim, you will be evaluated for the FHA’s other loss mitigation tools to help you repay the balance owed over time.
*Available options may vary depending on investor guidelines. Additional eligibility requirements and documentation may be required for these options.
Important Information to Come
In the next several days, you will be receiving a letter that provides the details of your forbearance plan. Please carefully review all the information provided in the letter including the options that may be available to you after the forbearance plan period.
A Note About Automatic Payments
If your automatic monthly draft was set up with us, your payment will be stopped when your forbearance plan begins.
If you set up monthly drafting (bill pay) with your financial institution, you will need to contact them directly to stop automatic drafting.
In this short video, I’m going to show you guys how to put your loans into forbearance and I’ll walk you through some of the screenshots on it. This is the story but if you’re using the internet and one day he will try to rent them out. And then he became one, stop me. I got this email recently from my mortgage company. Actually, this is my servicer send lar, email saying that due to the Coronavirus and all the challenging times, the job brought this up to my attention that a forbearance in a temporary suspension of your monthly mortgage payment does not mean your payments are forgiven is important for you to know once that the forbearance period ended the suspension portion is due and you will not have to pay it back all at once you have some options. The Cures Act allows a borrower to have initial forbearance up to 180 days regardless of the liquid status. Scrolling down on this For Fannie Mae and Freddie Mac, every bank loans, see how we can do this to make you want to click on the link here and I’ll walk you guys through me trying to apply for this thing and see really how hard it is to put your loan in forbearance. So my lender on this particular property, it’s a turnkey rental in Birmingham, Alabama. But that doesn’t really matter. The only thing that matters is I’m using settler A lot of you guys are using some different servicers. On these servicers work with you know, folks like Wells Fargo Bank of America, servicers just is the person that interacts with you and collects the payments and that you basically these days, you just do everything through this internet portal. So I’ve logged in here and what you want to look for is something that says some kind of Coronavirus or forbearance option, usually have a flag in here it is for me, so I’m just going to click right here. Basically, they want you to certify that you’re telling the truth and everything. So acknowledging here I’m going to put in my low numbers of security number properties and press Next. Next screen, they’re asking if there was a financial hardship due to Corona virus. Yes, we were impacted. And remember this is they’re asking if you’ve been impacted, not necessarily infected. And that’s I think that’s what’s throwing a lot of people off. Of course, I’m not giving any tax legal or professional advice here, I’m just doing a holiday, how I would do it. Here’s kind of the forbearance option number forbearance is not really like you’re getting your payments, forgiven or anything like that. It’s more that you’re getting your payments delayed, which is nice, I mean time value of money. I’d rather kind of hoard cash a little bit, especially if you’ve got some other liabilities going on delay and basically they’re going to tack it on at the end and Right on the third or fourth month, your next payment is due anyway. Can you do the process, they kind of spell this out a couple ways just because there’s so much confusion over it again, they just pretty much tack it on at the end and you got to make sure you got this money. At month four or five or six, I think how long you’re going to do it. There’s a couple options here. Whether you want to take the three month forbearance options, and I think that’s they’re going to give that to everybody. But if there’s an option here, if you want to extend it out, you’re probably going to have to send in some a little bit more proof. You know, I want the longest term but the least least amount of headaches in interaction with you guys. So yes, and yes, Smith, see what happens. This confirms that you have been placed in the forbearance plan I think that’s it and there’s no other screen. So I think that’s about it. I usually set up auto payment on all my loans. So what I’m thinking is hopefully they just won’t fall. next few payments but I got the money in the bank anyway in case they do I just mainly did this to show you guys who are in some financial trouble out there that you know this is an option and it’s pretty simple to do you don’t have to talk to anybody. If you guys want more help with this, check out our newly started incubator group for new remote investors check out our podcasts will pass the cash flow.com and please share this with your friends and subscribe to the YouTube channel. I’ll see you guys later
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