Mortgage servicers, who process monthly mortgage payments and handle the management of various home loans, are quickly creating programs for borrowers impacted by COVID-19. Uniform rules for such programs are being legislated, and will be rolled out soon.
In the meantime, it should be noted that most mortgage servicers already have solutions to offer distressed homeowners!
These programs are available to anyone with a qualifying hardship. Typically this includes a job loss, divorce, illness, injury or just about any other life event that happens beyond your control.
Below are some common mortgage remedies. Please note, each of these require a formal application and review process which may vary by mortgage servicer. There is no guarantee of approval. It is best to continue to make your scheduled mortgage payments, if possible, while seeking one of these solutions.
Deferment: a certain number of mortgage payments may be “skipped,” but they must be paid eventually. Deferred payments may be put at the end of the mortgage term, lengthening your payment schedule.
Forbearance: if you miss one or two payments, your lender may allow you to make them up gradually with a structured repayment plan.
Modification: if you qualify, your lender may reduce your interest rate, or extend the loan term, or both, to create a lower monthly payment.
During the review process, your mortgage servicer will ask for a financial disclosure, and may require you to supply bank statements and other supportive documentation. (This isn’t too different from a mortgage application process.)
This is only a brief overview. If you are experiencing a financial hardship, please contact your mortgage servicer for information about available options!
As your Exclusive Buyer’s Broker, we serve your best interests at all times! Unlike real estate agents and brokerages who represent sellers, as an Exclusive Buyer’s Broker, we only represent you, the buyer, getting you the best price and terms with no conflict of interest at all times.
Understanding this distinction could literally save you thousands of dollars not only on the purchase price and terms, but also on seller concessions and home inspection issues, whether you are a first-time homebuyer or an experienced homeowner!
Contact us with your home buying questions! Remember, we are with you every step of the way…all the way home!
Andrew Show
Exclusive Buyer’s Broker, CEBA-M, MCNE, CSP, PSA,e-PRO, CREM, ABRM, AHWD
Buyer’s Resource Realty Services www.BuyersHome.com
Serving Metro Columbus, Ohio with Exclusive Buyer’s Agents
7100 North High Street, Suite 204, Worthington, Ohio 43085
614-888-4110 | 888-888-4110 Toll Free | 614-839-4110 Fax
