Let’s do some ‘mortgage forbearance math’

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Mom and Dad have a mortgage.

It's currently $1,500 per month.

Dad gets laid off, calls the servicer, and asks for forbearance. In one phone call, he gets 6 months "off" from paying.

Dad almost passes out and says, “WHY??"

Servicer: "That's the 6 months of forbearance plus the current month.” Dad: "I can’t do that, can we work something out?"

Servicer: "Sure, we will spread out the $9,000 over 12 months."

Dad: "Phew....ok, good. What will that look like?"

Servicer: That will be $2250 a month for the next 12 months."

Dad: " OMG!!! I can't afford that."

Servicer: "Sorry....."

Dad: "Can I refinance?"

Servicer: "No because the loan went into forbearance."

Seven months later, Dad is finally back to work and hasn't been able to save any money during the

 forbearance.

 Forbearance is lifted and servicer says,

 "That will be $9,000 + $1,500, which is now due". ($10,500)

 Dad: "What can I do?"

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 In a nutshell, this is forbearance, folks. Forbearance is not forgiveness. We need to keep putting this message out there because we are still getting a lot of questions. Please understand the

seriousness of this, and if you still have questions, you know we are always here for you.

 We will help guide you in the proper direction. We know these are very hard times and understand there is panic in uncertainty.  Please just hang in there.  This too shall pass.

Yvonne Godina, Loan Officer

Fairway Independent Mortgage

If you ever have any questions or want to know more, please feel free to reach out to me. It is a good idea to have someone on your side when purchasing a home. Here is my contact information, in case you misplaced it?