In times of the unknown, it is easy to become overwhelmed about your financial responsibilities. It is important to understand what your options are and where/how to get more information about those options.
Forbearance does not erase the debt that is owed. All delayed or decreased funds will need to be repaid. It is important to note that each mortgage provider will offer different plans and that you must approach your servicer to discuss the options that best fit your needs.
How to request forbearance:
To start the process of forbearance, you will want to call your loan service provider and ask what options are available to you in times of hardship.
Be sure to call your service provider as soon as possible to discuss your options after a disaster or hardship, and some providers have criteria that requests must be made within a specific timeframe from the date of the disaster/hardship.
What to consider when looking at forbearance:
Forbearance will not affect your credit score, however, it could affect your ability to get a mortgage in the future, as payments are not counted as not paid but delayed.
Each service provider has different forbearance programs that they offer, take note of when payments will need to be made, how the repayment process of missed payments will affect your mortgage, and your payment timeline (some options require the holder to pay all delayed payments back at once).
Resources to learn more about forbearance:
Talking with your service provider will provide you with what types of forbearance are available to you. As well, you can visit the Consumer Financial Protection Bureau for more information or to seek assistance from a housing counselor.
