Forbearance bites you in at A$$ and holds you hostage! Help!

[Brice Hall]

In case you didn't know, you cannot refinance a property that is currently under forbearance. That's understandable, but what isn't IMO is that it also prohibits you from refinancing any other properties that you may own. Take the following scenario...

Bob owns his primary residence in his personal name, which is worth $2,000,000, and he owes $1,000,000.

Bob also owns a rental property outright, in his personal name, which is worth $100,000.

Let's say Bob decides to put his primary into forbearance due to any potential financial strain cause by covid. Fortunately, things don't get much worse, and Bob keeps his job, that pays $200k+/yr. Well, let's say Bob wants to refinance his rental property during the same period. To Bob's surprise, he gets to the 9th inning on refinancing and is expecting to close any day, and then all of a sudden the underwriter tells Bob he can't refi unless he exits forbearance -- which requires him to pay off the total amount that he's deferred, and exit forbearance, or exit forbearance and make 3 consecutive payments.... Jeez, if seems like freddie/fannie are holding Bob hostage, and he may be forced to sell the rental property if he needs cash, when all he wanted to do was refi?! Any ideas for Bob?