Considering a mortgage forbearance? Right now, many are wondering how they will make their mortgage payments. One option may be a mortgage forbearance. Depending on your mortgage company you maybe able to make no payments or reduced payments. Interest will still be added each month to your loan even if you do not have to make a payment. Missed payments are added to the end of the loan. Some companies will add it as one big payment while others will allow you to make payments on the skipped amount at the end of the loan. It is important that you ask your mortgage company how they will report this to your credit bureau. Some will report it as delinquent while others won’t.
Many lenders are trying to work with homeowners right now due to COVID-19. Don’t be afraid to ask! Bank of America and Truist (formerly BB&T and Sun Trust banks) is offering 90 days of deferment. Ally Bank is offering up to a 120-day deferment. Wells Fargo is offering a similar 90-day suspension of payments.
Forbearance is not the only option. You may want to talk to your bank about Deferments, loan modifications, or refinancing options that are available also.