Can I Defer a Mortgage Payment?
If you're looking into deferring a mortgage payment, it's likely that you are experiencing a temporary financial hardship. Deferring, or skipping a payment, is an option that may offer some relief to get you through this tough spot.
There are advantages to postponing a mortgage payment during an unexpected financial crisis. The main benefit is that it can help you to avoid foreclosure on your home loan.
Note that temporarily suspending a mortgage payment is dependant on meeting a particular set of criteria as well as the availability of that payment option.
Below is some general guideline about deferring your mortgage payment. However, for personalized answers based on your circumstances, please call our office.
What is "Forbearance"?
"Forbearance" is the term mortgage professionals use to describe postponing your payment or reducing the amount to provide short-term relief for the borrower. If your loan goes into forbearance, this means that you're allowed to skip your mortgage payments for a specified length of time.
Foreclosure proceedings will not occur while forbearance is in place. Once the forbearance period is up, your obligation to pay the full mortgage payments start up once more. You'll also have an additional amount to pay to catch up on those skipped mortgage payments.
Proof of Hardship
Like mentioned above, each circumstance is unique --there are instances that forbearance is available and other situations that, unfortunately, it's not an option. The best way to know is to call and ask! You'll be asked to provide details of your financial difficulties, including proof that it's only temporary.
It's important to understand that forbearance is a temporary solution for financial difficulties. If you think that this tough spot will last longer than a month or two, alternative and permanent loan modification solutions may be a better option.
Not sure which is the right choice for you? Get all the info you need by calling our office!
Negotiating the Right Mortgage Fix
Forbearance has a variety of options, all dependant on the nature of your financial hardship as well as other guidelines. In some situations, mortgage payments will be placed on hold for a month or two. In other cases, a reduced mortgage payment makes sense. There are even circumstances where the late fee is waived or rolled into your mortgage balance.
Remember that these are only a few of the options and all of them may not be applicable your situation. Call to find the plan that's right for you.
Is It Necessary to Defer?
There are other options besides forbearance! Late charges usually don't kick in until after a few days, so maybe a grace period is all you need payment to get over the temporary financial pinch. Also, credit bureaus may not be notified of the late payment until it's 30 days past due.
Circumstances happen that make skipping a mortgage payment helpful. Carefully consider the ideas mentioned in this article and call our office for more detailed information about deferring your payment or finding a permanent solution to lowering your monthly payment.