Please read carefully

Mortgage Borrowers affected by Covid 19

Forbearance/Deferment of Mortgage Payments:


  • Typically allows for borrowers to lower or skip payments for a period of time due to a financial hardship.


  • Legislation in the works for plan to:
    • Provide borrowers to obtain a 90 Day break from their mortgage payments (however, this could be extended to a full year, in some cases)
    • Provide protection to borrowers that would eliminate:
      • No negative reporting for missed payments to the credit repositories
      • No late fees
      • Elimination of calls to borrowers regarding missed payments from servicers
      • Missed payments would be made at the end of loan, extending the life of the loan.


  • Currently servicers/lenders are handing deferment/forbearance requests differently


    • Some may be requiring that the missed payments be paid back in 1 lump sum when the deferment period is over.
    • Some lenders are also providing Modifications which will spread missed payments out several months and add missed payments to the end of the loan


  • Recommendations to borrowers:
      • Find out what their policy is regarding Forbearance
      • This information may be available on their website
      • This may be an arduous process right now due to the volume of calls they are getting but it is essential!
      • You to make sure you read and understand any documentation you receive on the options you have been given!!!!


    • Keep any documentation obtained in case it may be required when applying for future mortgage loans.


  • To obtain a forbearance or modification, the agencies will continue to require the following information when determining if a borrower is eligible for this relief:
    • Borrower must have been current or less than 31 days delinquent (must not have missed more than 1 monthly payment) at the time of the Disaster. (March 13, 2020)
    • Document the hardship:
      • Loss of income
      • Reduction in income
Vikki McDaniel
Mortgage Loan Originator