At Penrith, we believe knowledge is power. That’s why we’re dedicated to educating our clients, setting them up for success. After all, mortgage specifics can be complicated. We’re here to guide you and answer any questions you may have.
If you’re currently impacted by the COVID-19 pandemic, now is an important time to understand your mortgage relief options and take action. You may have heard the terms “forbearance” and “forgiveness” being thrown around in the media, but what does this really mean for you and your mortgage payment?
We’re breaking through the confusion and misinformation to assist you in making informed decisions regarding your mortgage.
What You’ve Heard: Your mortgage payment may be “forgiven” or “waived” completely.
The Facts: While it’s true some mortgage servicers are offering forbearance, which is a period of time when your regular mortgage payments are delayed, your payments will not be forgiven or waived. In fact, with forbearance, at the end of the “paused” payment period your mortgage payment is required to be paid in full.
What You’ve Heard: Your skipped mortgage payments can be tacked onto the end of your loan.
The Facts: While some banks are providing this as an option on some mortgages, the majority of loan servicers are not. That being said, there are alternative options if you need additional assistance during this time.
What You’ve Heard: Utilizing a servicer’s forbearance plan is an impractical option as you’ll be unable to pay your outstanding mortgage payments in full after the forbearance period concludes.
The Facts: While in most cases you will be expected to repay your mortgage payments in full at the end of the forbearance period, whoever handles your mortgage servicing will have alternate options and plans in place to assist you in providing another avenue if you cannot. These options may include a repayment plan or loan modifications if you qualify.
The best way for you to know and understand your options is to contact your loan servicer—this is the institution that provides your monthly payment statement and maintains records of your payment and balances. If you have concerns about making your upcoming mortgage payments, reach out to your loan servicer today. Don’t wait! You’ll find contact information on your latest mortgage statement.