Anyone request loan forbearance / delayed payments?

[Cliff T.]

Just curious if anyone here has gone through the process yet. Everything that I have read thus far states that loan forbearance payments will be due as a lump sump at the end of 30, 60, or 90 days. In other words, you'll need to pay the full payment at end of the forbearance period. That's not very helpful at all and delays the inevitable.

Has anyone successfully reworked their loan terms and instead, find a way to get a lender to extend the term of the loan by 30, 60, 90 days?

[Alan Ford]

There is unfortunately a lot of misinformation by supposed experts here on this thread. I strongly urge you all to look at the text of the new CARES act.

Bottom line - if you have a federally backed mortgage (Fannie/Freddie) - you will get forbearance guaranteed with no documentation needed, no penalty, no interest and not affect on your credit.

Here is the relevant text:

Forbearances:

Borrowers with a “Federally backed mortgage loan” experiencing financial hardship due to COVID-19 may request forbearance, regardless of delinquency status. To request a forbearance, the borrower must submit a request to his or her loan servicer and affirm that he or she is experiencing financial hardship during the COVID-19 emergency. No documentation other than the borrower’s attestation of financial hardship due to COVID-19 is required.

The borrower is entitled to a forbearance for up to 180 days, and this period shall be extended an additional period of 180 days at the request of the borrower. The borrower’s initial or extended forbearance period may be shortened at the borrower’s request. During the potential 360-day forbearance period, no fees, penalties, or interest beyond the amounts scheduled or calculated as if the borrower made timely contractual payments shall accrue on the borrower’s account.

Reciprocally, servicers may not collect any such fees, penalties, or interest during this forbearance period. The only caveats allowing servicers to collect fees, penalties, or interest are that any forbearance request must be made by the borrower and within the covered period.