Partner Andrew Demers discusses mortgage forbearance options in a recent U.S. News & World Report article titled “What is Mortgage Forbearance?”
As the coronavirus continues to wreak havoc on the economy, many homeowners have been unable to make their mortgage payments. The CARES Act contains provisions to help borrowers, which allows homeowners facing hardship due to the coronavirus pandemic to obtain mortgage forbearance for up to one year.
“Borrowers should understand the lender is not waiving those payments but temporarily suspending the collection of those payments,” said Drew. “Once payments are suspended, the lender is not able to issue negative reporting to the agencies.” As with any major financial decision, he also advised, “If it’s going to be a longer-term program, you could ask your lender if you can restructure the loan.”
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