We are living in unprecedented times. So many workers are laid off or furloughed – out of a job – right now. Pennsylvanians are hurting, as are residents of every state. If you own a home and have difficulty paying your mortgage, please read on.
If you have recently lost your job or have reduced hours and need to consider financial options right now, consider contacting your mortgage lender or mortgage provider if you own your home. Through the stimulus bill passed recently, you may be able to delay up to 12 months of mortgage payments with no penalties, interest or credit rating consequences. You may also have options to refinance or cash out on your home equity, depending on your current situation.
If you are considering skipping mortgage payments, please know this:
- Don’t skip a payment without contacting your bank. Lenders are willing to work with their borrowers but you MUST call them first. Don’t just skip a payment and expect it to be okay.
- If your bank offers 3 or 6 or 12 month deferment know that this is NOT mortgage forgiveness. It simply pushes the payment off till later
- Deferred payments are not automatically tacked on to the end of the mortgage. Some will be due at the end of month 3 or 6 (at the end of the forbearance period) – not automatically added to the mortgage. It is important you understand the difference here.
- Read the fine print. Always.
- A mortgage that is in forbearance may NOT be allowed to be refinanced, should you choose to do that in a few months. You may not be allowed.
- Your credit may be harmed – if they pull your credit before or during the forbearance period (some banks will, some won’t). Ask.
If you have questions, call your lender. As always, we are here to help. Let us know if Ramus Realty Group can help you in any way.
Stay safe, stay home and call us if you need us.