All Forum Posts by: Alan Ford

@Tchaka Owen I have three Fannie Freddy loans - Wells Fargo Gave me three months on all no questions asked. I don’t know what to tell you. This likely doesn’t work for any weird loan schemes I see people talking about.

@Kathy Utiss sorry but you wrote this mountain of information that has literally nothing to do with what we are talking about. Thanks for your resume I guess. Can you comment on the CARES act and the topic ? Thanks

@Kevin Boyd right now it’s 3 months no questions asked. The options for payback are up to the bank but I believe most if not all banks are allowing the added terms to be moved to the back of the loan. The law does allow for up to one year though.

@Ryan Spath - it’s part of the CARES Act just passed and is now LAW. See below

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.

@Nicky Reader CARES is law yes. Trump signed it. Banks that do not follow are breaking the law. Period full stop.

@Kathy Utiss are you saying the banks break the law or don’t follow it properly or what? I don’t understand why anyone wouldn’t take advantage of these options in the short term?

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.

@Lucas Carl sure - just call your bank and say you

Have been affected by a loss of income from

The Virus. If your loan is Freddie or Fannie backed they have to at least give you three months. That’s guaranteed. The exception is Bank of America. They are only Doing one month.

It took me an hour or two on hold but it got done. My lender is Wells Fargo.

@Lucas Carl you edited your post and now my response doesn’t make as much sense lol. Too lazy to edit mine. But that’s my answer to your original comment about my PM screwing people.

Based on the vast posts on this forum, the news, Reddit etc. it’s clear that AIRBNB put their guests first and not their hosts. I don’t think anyone can argue that.

@Lucas Carl PM is handling it fair, not screwing anyone. They are allowing cancellations but not anywhere near as liberal as AIRBNB. I think there has been only two circumstances so far where a guest was screwed, and it looks like it’s being taken care of. I can only go by their Facebook page which they purposefully left open for dialogue (they didn’t have to)

I for one am happy that my May reservations and late April reservations are still on calendar. If the travel restrictions stay in place, I’m sure my PM will extend the cancellation periods.

Having said all that, I have gotten loan payment deferrals on all my properties for three months, no impact to credit, no penalty. Adding it on to the back end of the loan an extra three months.