Repercussions from forbearance

[Teague Anderson]

Hey all,

I heard rumors of unintended consequences from taking advantage of forbearance programs. Specifically, when the dust settles lenders may deny loans for borrowers who took such advantage, or may want to see proof of 12-month continuous payment of their existing loans.  I heard from a guy, who heard from a guy that Wells Fargo was already drafting up such language for their borrowing guidelines.

Has anyone else heard such rumors?  If true, that would definitely convince me of not taking forbearance.  Good thing I was a good little investor and have reserves.

Thanks,

Teague 

[Chris Seveney]

@Teague Anderson

I think people are trying to find ways to use the forbearance to their advantage when they do not need one. Taking aside your values and if it is ethical - in 99.9% it provides no added benefit if one is not needed.

More than likely it will absolutely hurt you down the road - even though it won’t effect credit score it will still show up on your report. If it’s investment properties I would be willing to wager lenders will look at as a very big negative for future lending