Why A Mortgage Forbearance May Be A Bad Idea.
Should I apply for forbearance or miss a payment?
Recent changes by the Federal government as part of the CARES Act have allowed homeowners to miss up to 6 months’ worth of payments.
This is a HUGE relief for thousands of Americans but homeowners BEWARE.
Choosing to delay your mortgage payments can and most likely will come back to haunt you.
If you are able to make your monthly payments, you should.
The extra money may seem great at first but these missed mortgage payments will definitely cause issues down the road.
Currently, if your mortgage is in forbearance you will be AUTOMATICALLY DISQUALIFIED from purchasing a new home OR refinancing your current home.
The mortgage freeze is meant for homeowners who need the money now.
Maybe you are out of work or have reduced hours. Ultimately you would miss your payment and this program was designed for you.
The payments that you miss will ultimately need to be paid and interest will be added as well.
During the Great Recession of 2008 thousands of Americans experienced foreclosure.
Falling behind in your payments now will only set you up for failure should the economy stay shut down for a longer period of time.
If you or someone you know is considering a mortgage forbearance and have questions please reach out to me.
You can pick a time on my calendar HERE.