Hey everyone. This is Darren with Big Buck Home buyers. I just wanted to take a minute and make a video for you here and talk to you about the topic of forbearance, which is something that you may have heard of right now, because it’s a hot topic right now for a lot of homeowners due to everything going on with COVID-19 and folks losing their job and businesses closing, and all that unfortunate stuff.
Homeowners are looking for ways of staying in their house. There’s some folks who may have lost their job and are having a lot of difficulties paying for their mortgage. And in that case, they’re turning to their lenders, their mortgage companies, to help them out with that a little bit and one option that some mortgage companies provide, and again, this is highly dependent on your mortgage company, your type of loan and all that, is some mortgage companies are granting what’s called forbearance.
And what this is it’s a temporary suspension of you having to make your mortgage payments. Please don’t think for a minute that this is loan forgiveness. No matter what, the mortgage company is going to get their money, right? But what this does is this is just a temporary suspension of you having to pay your monthly mortgage payments.
And this can work out in a few different ways. And again, please check with your mortgage company before making any decisions on this, but it can happen in a couple of different ways. The first way is you could be given a short term forbearance of let’s just say two or three months.
So, if you have a mortgage payment of $1,200 a month and you’re granted a three month forbearance, then after that period, after that three months, you are then going to owe that lump sum that you’ve missed. So you will have to pay that $3,600, three months times 1200, plus the following month. So you’ll have to pay $4,800 for that fourth month. That gets you back, catched up with your payments.
Another option is that you could be given a forbearance for three months again, but then your payments will then change for the next year. So the amount that you owe for that forbearance period will be tacked onto your mortgage for the following year. So, for the three months that you’re behind, $1,200 each month, that would then be spread out over 12 months. So, that’s $300 a month. So then for the following year, your mortgage payment would be $1,500.
Another option is that your mortgage company could give you a forbearance period of let’s say a year, and then your mortgage would extend for a full year. So, let’s say your mortgage is set to come due in the year 2045. Then your new mortgage could come due, 2046. So that year would be added onto the end. There’s also possibilities of a new loan being created for that year of forbearance. But again, this is highly dependent on your lender.
I just wanted to put this together for you and explain this just because you may be in the middle of this right now. I do have a client right now who’s working with a forbearance and has a pretty hefty mortgage payment coming up because the forbearance period is almost over. So, please, if you do apply for a forbearance, make sure that you understand all the details of it, all the terms and conditions from your lender, because I don’t want you getting stuck in a corner.
However, if you have been stuck in a corner and you need some help with this, please reach out. We can help with this. We can give you some options for getting caught up with your payments. We can give you options for just moving on. Please give us a call. We can be reached at (210) 920-5280 or on the web at bigbuckhomebuyers.com.
And again, we can provide options if need be. We can take over payments. We can catch up your mortgage and take over your mortgage payments. We even buy houses for cash. So if your house has just gotten a little bit too much for you, then we can take over payments. Like I said, and we can buy your house for cash. We can make you a cash offer.
Again, we want to try first to keep you in your house, okay? So, we’ll take the time to get to know you and your situation. And we will create some options for you to try to keep you in your house because that of course is the priority. But again, if we can’t, we’ve got other things that we can do to help you as well. So again, please give us a call (210) 920-5280, or visit us at bigbuckhomebuyers.com. And again, we’d love to help you out. So, please let us know if we can help. Take care. Thanks.