Q: What Do You Need to Know About Forbearance?

By Mark Callender

Hello, my name is Mark Callender and I am a licensed real estate agent with RE/MAX Results. Because I have been helping families buy and sell their homes for more than 18 years, I am now helping their children to buy their first homes and their parents to downsize. No matter the direction you’re moving, my goal is to make the process as calm and enjoyable as it can be.

Here’s what you absolutely need to know about mortgage forbearance.

Many people are applying for mortgage forbearance amid the pandemic. All over the world, the pandemic continues to dictate every facet of people’s lives. According to MarketWatch, the requests for mortgage forbearance have increased by almost 2,000% nationwide. This is because the CARES Act demands that service providers offer forbearance to homeowners with federally backed mortgages.

However, you need to remember that you will have to make these payments at some point—forbearance isn’t the same as forgiveness. If your payment is deferred for six months, you’ll be expected to start paying it in full in the seventh month, or your provider might add the deferred amount to the end of your loan. Make sure you understand the terms of the forbearance before you sign anything.

If you have more questions about forbearance or anything else, don’t hesitate to reach out to us. We look forward to hearing from you.