Coronavirus And How To Get Help On Your Mortgage

[Erik Sandstrom]

Have you suffered a loss of income during this Covid-19 pandemic?

If you have, you may qualify for a variety of programs being offered by Fannie Mae, Freddie Mac, Ginnie Mae (FHA), VA and USDA. Mainly government programs will and or have started participating in a program allowing payment relief.

Fannie/Freddie have announced (as long as you qualify) that you may be able to make reduced monthly mortgage payments or be given a relief up to 12 months of the mortgage payment.

You can also obtain full relief but the payments missed or put into forbearance (tacked onto the end of the term) in many cases may have to be paid back once the forbearance ends. That is still up in the air with how it will be handled and assuming it will be a case by case basis similar to what occurred back in 2008.

All it takes right now is a phone call to the company you make your payments to. You may experience long hold times but definitely reach out. Do not just stop making your mortgage payments!

*During these times like 2008, guidelines will and continue change on a daily basis. Lenders are pulling back on product offerings. What is true today may not be true tomorrow. Call us at 800-779-4547 if you have been impacted to see how we can help*

 

[anna b oubre]

with this covid_19 epidemic going on, I have very limited finances available. if I could get a 2 or 3 months deferment it would be very much appreciated. thk you

 

[isisis]

Hi Eric,

If you're in the process of being considered for modified terms will the new interest rates be helpful in getting more affordable terms?

 

[OneHugeMess]

@isisis, are you in the process of getting a loan mod? Anyway, you should know that most servicers use the average weekly rate from Fannie Mae or Freddie Mac, as one of the ways to calculate the modified interest rate for a "In-House Mod" or "HAFA Mod". Hopefully you'll benefit!

 

[isisis]

Not in the process of getting a modification but they're offering a settlement to avoid ongoing litigation that would include what they call a "loan adjustment". Pretty much the same thing though. The previous settlement fell through and I was hoping this one might have better terms with interest rates dropping.

 

[OneHugeMess]

Not in the process of getting a modification but they're offering a settlement to avoid ongoing litigation that would include what they call a "loan adjustment". Pretty much the same thing though. The previous settlement fell through and I was hoping this one might have better terms with interest rates dropping.

If they offer you a decent rate, and a reduction in the interest-owed, I would really consider taking it.

 

[Erik Sandstrom]

Hi Eric,

If you're in the process of being considered for modified terms will the new interest rates be helpful in getting more affordable terms?

Hey isisis,
Right now rates are great but it would really depend on what is being offered within the modification. I know both you and I have seen some really amazing modifications in our day down at 2% levels, interest rates aren't that low.

The market is also extremely volatile and we've been seeing interest rates bounce around like a ping pong ball (up, down, up, down) and right now they are more on the higher side (but still low). I'm keeping many people on the sideline ready to go when we see another big dip like we saw from March 3rd - 10th.

Feel free to shoot me an e-mail or phone call if you want me to add you to that list: [email protected] / 619-379-8999

 

[lmg9512]

PHH/NewRez Mortgage is not helping anyone. They are giving the standard you can skip paying for 3 months but the 4th month all missed months become due. So basically aren't helping. As most standard foreclosures allow for 3 months of missed payments anyway.

 

[Gaucho]

SLS is doing the same thing. You can skip paying for 3 months and the 4th month it's all due + interest.

 

[doncann]

I don't understand how they can do that, the governor said on tv that it will be put on the back of the loan so I am not understanding this. Many people are going to be misled

 

[Gaucho]

SLS is only a servicer for say BofA, JPMorgan Chase, Wells Fargo who are the investors. So if SLS provides a deferment then they (SLS) has to pay the interest and fees on that loan while it is being deferred. It's a cluster...

 

[Erik Sandstrom]

Yikes, that's exactly what we DON'T want, it all becoming due at the end of the 4 months.That changes nothing and is exactly what is implemented today called "UP Forbearance" which is the unemployment forbearance program. Can everyone please update this forum as to what the servicers are doing and if anyone has the chance to mention the UP Forbearance plan isn't a new program, let me know how they respond.

 

[isisis]

Eric and OHM,

The timing isn't going to be my call. The bank will put the offer on the table and I can either accept or they'll try to foreclose and we go back to court for an injunction. I've been in litigation since 2016 and between the risk and the expense it's gotten old. The underlying problem it's that all the while interest has been running and the high interest arrears become part of the new balance so I'll end up paying interest on interest. I wish there could be a reduction in the interest-owed or principal forgiveness but two things. First, I have a quite a bit of equity and second, I've just cost these guys a lot of money in years of litigation. And well, there's no love lost on either side, a big part of me doesn't want to settle but to try to get some damages under the FDCPA among other things.

Suggestions?

 

[Erik Sandstrom]

Did you by chance email me a copy of the mod? I haven’t seen anything come through. I’m more than happy to take a look at it.

This specific thread I would like to keep as a conversation of what people are doing/have accomplished with their servicers regarding Covid-19 impacted relief.

 

[isisis]

The settlement with the "loan adjustment" isn't on the table yet. The bank's attorney just mentioned its in its way.

Sorry, didn't mean to hijack the thread. As you'd imagine I'm just accustomed to the stream of consciousness conversation on Bagels.

 

[isisisLover]

Exactly... Just like the topic stated. NOT!!!. We need to get real and grow up. The investors are in it for the money. Helping only means how they can to take more money from us. Just enjoy life it as it comes. because it will go and be gone.

For example, why bother wasting time hoarding anything. You'll run out soon. All people will be doing is staying home doing nothing, watching tv, reading, blogging, internet, making babies, and eating all up? so the 3-6month supply is done in a week or two.

 

[CovidConfused]

To update this thread, I the following language was in the mortgage forbearance response from JPMorgan Chase:

We are providing the following protections on your loan for 90 days:

• We will not charge late fees.
• We will not report late payments to the credit- reporting agencies, but previously reported information will not change. As a general rule, we will resume regular credit reporting at the end of the 90 day protection period and any late payments may be reported at that time.
• If your property is occupied, we will not start or continue any foreclosure actions during this time.
• We will not place collection calls or mail collection letters but we will contact a customer if they miss a payment during the protection period to determine how we can assist them

Please also note:

• When your relief period ends, any missed payments will be due. We'll be in touch to explain options that may be available for you to repay these amounts."

I believe the bolded language means this is an "UP Forbearance" protocol? I don't see how owing 4X mortgage payments on the 1st of the 4th month will help anyone.

 

[OneHugeMess]

After the 3 Months, they'll send you a mortgage statement demanding the entire forbearance period due immediately, as well as the 4 month's payment. When it's NOT PAYED, they will follow up with a Notice of Default, and Intent to Accelerate. Once it's accelerated, they'll transfer your loan to a law firm to pursue foreclosure.

Everyone needs to be very careful and get things in writing. I have a terrible feeling that millions of people are going to lose their homes over this.

 

[CovidConfused]

I completely agree OneHugeMess!
During my research I saw that BofA is giving a 3 month deferral which tacks on to the end of the mortgage term. I hope everyone else follows suit.

 

[lmg9512]

This is the same thing PHH/NewRez is doing. Allowing 3 months of non payment and then having everything do on the 4th month July. My guess is they will start foreclosure proceedings then. My best advice for anyone is not to go more than 89 days late. Every 80 days make sure there is a payment made. This should protect you from foreclosure at least.