SKIPPING THE MORTGAGE PAYMENT March 28, 2020
Have you heard the news talk about skipping a mortgage payment? Or perhaps the news discussed forbearance options and delayed foreclosure or evictions? This is always the last resort because you signed a legal agreement to pay the mortgage payment if you want to keep the house. A home is not a right in this country.
Some borrowers will be tempted to skip payments whether they need to or not. Before you cancel that auto-draft, go to your lender‘s website which it has lots of options, mights and maybe’s. The note you signed with the attorney at the closing table has NO mights or maybes. Don’t be deceived. Those skipped payments are NOT forgiven but mIght or maybe delayed or restructured, resulting in a large lump sum or higher interest rate with a restructured mortgage payment months later.
If you have the financial resources, you should continue to make payments, as skipping payments will likely cause significantly more financial strain at a later date. If you really have no money and absolutely can not make your payment, don't just stop paying. Call your lender and discuss the options thoroughly so you understand the full consequences of your next step. The hold times and recordings may be long, but knowing their next step will be worth the wait.
UPDATE 4/30/2020- It seems the lenders and the government are working together to make reasonable adjustments to mortgage payment plans and provide solid information for those in need. The particulars are going to be unique with each lender and borrower, so please get the mortgage adjustments they offer in writing including whether they will be reporting these delayed payments to the credit bureau. If you have any problems where a lump sum payment for all the skipped payments is immediately requested after the relief, reach out to the CFPB for further assistance. The maximum relief which I have heard is 12 months of deferred payments, but your negotiations and personal circumstances will determine what is available to you. Be safe my friends!