All Forum Posts by: Charles Montgomery

@Matt M.

See above post.

@AJ Shepard

Most who entered forbearance are still in forbearance so there may not be many people here who can answer your questions from personal experience. But I can tell you that you will need 3 consecutive months of repayments after forbearance before you can obtain a new loan. However, you CAN refinance a loan in forbearance.

Your servicer has two options. They can either add the forbearance term to the end of your mortgage (so add a year to your mortgage for a year of forbearance) or they can slightly increase your payments throughout the duration of your loan. It is up to YOU to negotiate which option you receive. I recommend the first option. Below is a link to a highly detailed post of mine detailing all of this. You will see many negative reactions but if you read past the noise you will see no factual problems with forbearance as a strategy!


@Jay Hinrichs

I have multiple loans in forbearance and my fico score has not been effected other than the usual ups and downs by a few points completely unrelated to forbearance. It DOES show up on your credit report though.@Matt M.

@Matt M.

Your experience is before the FHFA issued guidance. Lenders cannot request/demand a lump sum payment at the end of your forbearance term. It isn't too late to enter forbearance!

For whoever wants more information!: https://www.biggerpockets.com/... 

@Bryan Bannach @Bill P.

You are both right! This is completely legal and justified. The reason you see so many negative comments is because several of those who commented are/were investors in these mortgages. So it's actually in their best interest to insult me and scare people away from forbearance even if that's what people need to survive! 

They invest in mortgages so you can already guess that they are well off. Why should they care about those aren't? 

This is a legal and justified way to get ahead for the average man but nope the banks and their investors don't like it! 

@Mike Dymski even tried to justify 08 by claiming the Govt made 30 billion dollars over 10 years! Every investor here knows that is a joke because 30 billion is pennies in the bucket but the average person wouldn't know that. 

Look up "financial cost of 2008" and we have estimates from 10-20 TRILLION dollars. Yet we should be happy the government made 30 billion dollars?! 

@Rosario Rolandi

I'm happy you have recovered! Forbearance is usually renewed every 3 months and you need to specifically request to renew your forbearance at the 6 month mark yourself. Make no mistake, you are eligible for an ENTIRE YEAR of forbearance. Not just 3 or 6 months. 

As far as purchasing a new property, if you really want to buy a new one hard money is an option. Then you would need to wait a MINIMUM of 3 months after your forbearance with consecutive payments to get a loan on the property or a different property. You may need to wait longer to work with certain lenders or get better terms on the loan.

I would wait, stay in forbearance, which is what I am currently doing with all my loans, and every penny saved can be used as a down payment on my next property or properties depending on how much you have saved during this time. Another option would be to put that money towards your existing home loan and making it worth almost TRIPLE what it normally would be towards your principle. I stated all this in an earlier post on this thread. Either way, staying in forbearance gives you more options and buying power!

@Benjie DeVera 

You are right and wrong. The interest does continue to accumulate but it will be the same amount as it normally would be, and you would not actually have to pay that until a later date, most likely at the end of the loan period in which the amount would be worth much less since it is years later, accounting for inflation. I will discuss loan repayment options in a separate post but this is a simplified answer.

This avoids the "compounding" of interest since the bank is legally only allowed to charge you in interest what you normally would have paid without forbearance. In a typical forbearance that wouldn't be the case!

@Chris Seveney Yep lenders can discredit me all they like but not one of them have disproved any of the benefits of forbearance that I had listed. When you can prove my post is incorrect just tag me. 

@Mike Dymski Wow the government made 30 billion after 12 years the banks should create another mortgage meltdown in that case since it was worth it then right?

@Mike Dymski I agree we should do everything we can to support lenders who always support us. They were so helpful in 08 and every other crisis. We didn't pay billions to bail them out or anything. They're true humanitarians.

@Teague Anderson Read this post https://www.biggerpockets.com/...

@Chris Seveney Maybe you should read the above post as well. No benefits? Really? 

@Account Closed I should have said no one said I was wrong and proved it. If you are going to be a sour old man please keep it off the forum!