Mortgage forbearance - yes or no?

[Adam Tafel]

Fanny/Freddy have put special provisions in place to help homeowners and landlords. Has anyone read the fine print? Wondering if there is any downside to doing this for a few months. Even if your property is fully rented, this is essentially a government-mandated interest-free loan. The program might only last a few months, but what if I'm not seeing vacancy issues until fall? It would help to stock up the extra cash reserves, assuming there are no fees/credit actions associated with requesting forbearance?

[Keith C.]

@Adam Tafel

As a Loan Officer Anyone who is in the process or was considering a ReFi or new Purchase I suggest you continue to make timely payments .

Any new lender will run a supplemental credit pull which will have the most current history from your mortgage company . Even though borrowers are exempt from making payments for 90/120 days depending on your bank leeway - No New Bank will look lightly on skipped payments. They have no obligation or govt incentive to start a new loan and rely strictly on your credit worthiness and track record.

If borrower was actually laid off there is concern for future payments and or if the borrower just wants to take advantage of a free period - banks see this is disingenuous.

In summary if a new loan is in process or possible in the next 6/12 months - I would advise if you can make the monthly payments on time ,,, or more than likely the new bank wont fund it . Let’s all make out of this period health and wealthy - stay safe and smart