Forbearance is NOT FREE Money

[Patrice Boenzi]

One of my lenders sent this out yesterday and I thought I would share it... Forbearance is NOT FREE Money!

Many mortgage holders in the U.S. have numerous questions about the specifics of mortgage forbearance and the potential consequences that may result if they request it. I am sure you are hearing a lot about the topic. I would advise caution when it comes to recommending forbearance if the borrowers are not in significant financial hardship. Without a doubt some are; but far too many I fear will sign up simply because they can. It is important to know that no payments are forgiven - they are just pushed down the road, and with some lenders they could be due in a lump sum after a period of time. Other lenders are requiring that at a minimum the monthly payment amount for escrow items (taxes and home insurance) be made each month. There is concern that some lenders will eventually report payments as late to the credit bureaus. All of these factor make the decision to request and participate in forbearance by borrowers a serious one that should be done only after careful counsel and thought. If you know people who are considering forbearance, please advise them to call their current loan servicer and obtain all of the information about the program prior to signing up.

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Offering more insight into the real damage to the mortgage industry that forbearance could cause, I have added a link below to an article that is rather deep and detailed, but very informative.

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I trust you are safe and well. Please reach out with any questions you may have.