Mortgage Deferral [What You Need To Know!]

Mortgage Deferral [What You Need To Know!]

hey guys d's and f's those are bad grades in school right well how about this deferment and forbearance a big fat d and a big fat f word and neither one is good so let's talk about how it affects you and if you should do it or if you shouldn't and if you have what to do welcome to your one stop shop for anything and everything mortgage education i am stephanie weeks 16-year loan officer also recognized in scotsman guide for top originators and also top one percent of originators in the nation for production for several years in a row and there are over 300 000 loan officers to choose from so very proud of that i've worked very hard for that that is why i think you should listen to me and the advice on this channel to help you get the best mortgage you can at the best rate and fees that you can with the best and most smooth and on-time closing that you can get because you deserve it i drop new videos every tuesday and saturday so i would be so grateful to you if you can like the channel if you can hit subscribe give me a thumbs up if you like the video and be sure to share it with your friends thank you so much today you are here with me to talk about mortgage deferrals which is also no known as a forbearance as well today we're going to talk about what that means how it may or may not affect you what we know so far in mortgage lending what we don't know and any tips that i can share with you so stay tuned to the end of this video if you want to hear all the details hi guys welcome back to the channel as we know life throws curveballs that is why i'm outside today that is why i'm wearing the earbuds today hopefully the sound ends ends up being okay because nothing is going as planned whatsoever for me but i felt like this topic was so huge that i could not miss this recording today it is mortgage deferment or mortgage forbearance so what does that mean first of all what that means is you're basically asking the lender for a reprieve from your mortgage like hey i can't pay it right now can i get a break without ruining my credit will you make that agreement with me because we have this huge crisis going on with covid and really unusual things are happening right now and so that's basically what you're asking for right if you can avoid a forbearance if you can avoid a deferment please do so i have had people that did not need it at all but thought what the heck i'll take the break they really shouldn't have done it it's affected their approvals it's affected their closings it has had an effect on it whether it be positive or negative whether it be a time delay i've seen it all happen so if you can avoid it then you do that is the simple simple fact the simple simple truth but life throws curveballs and all you can do is your best and heaven forbid if you were furloughed you were laid off or even worse you lost your job i am so sorry and i feel awful for that and if you have to decide between paying that mortgage and putting that food on the table or having the electricity on or whatever your situation might be then you take what you need to protect yourself and your family but i want you to know what those consequences could look like the worst consequence that i've seen is when the the guidelines came down and said you may not be able to purchase and you may not be able to refinance for 12 months that's the worst i've seen and that's not fun you know but it's not life or death so take your forbearance take your deferment get back on track after whatever that window is i've typically seen 90 days get back on track pay on time for those 12 months and then you know what it's just a blip it's just a piece of life and you just keep moving forward and you can't go backward and you don't beat yourself up some of the other examples of what i've seen is that they take the forbearance and because a lot of these things are computer generated heaven forbid it accidentally reports you late on your credit and yes if you have your agreement then you can get that reverse but it's still kind of a pain in the butt to get that fixed so if you're going to take the forbearance or deferment please do keep that in mind and keep an eye monitor your credit to make sure that it doesn't report you late accidentally it's not humans back there going there late they're on time it's a bunch of automations so you want to make sure you're protecting yourself from that the next thing is if you do have to take that forbearance or deferment you make sure you do not take that unless you have the agreement in writing in writing and writing and writing and please read every line of that to make sure what you're getting into but that way if heaven forbid there's a mistake and it does show that you were laid on your credit when you have that agreement in writing and you met that agreement you can get the report fixed pretty quickly and easily without a ton of headaches so make sure you get that completely in writing my next tip on this and i'm going to say it again it's moving no one knows what's happening and it keeps changing right but i've seen forbearances where they're going to give you the three-month reprieve okay and they're going to put it at the end of the loan two important things about that number one it sounds amazing yes the end of your loan good option if you have to go there but then what people aren't realizing is then let's say you can refinance and your balance on your credit shows two hundred thousand well if you missed three payments your payoff might now be 206.

defer mortgage payment

I don't know i'm making the number up right that's not fun to figure that out when you get a payoff three weeks into your refinance number one number two what people aren't realizing is that yeah i'm putting it to the end of the loan but when you pay off that loan to refinance that's the end of the loan you have come to the end you owe the money back and it's affecting your payoff it's affecting your new loan by your loan to value could affect your interest rate definitely affects your cash to close your loan amount all that kind of stuff so make sure you know what that means by the end of the loan and what that looks like and how it affects what you're specifically doing right and then the other thing is i've seen some of these forbearances where the three months is due in the fourth month so let's say that you got a reprieve for march april may sounds fantastic but if you didn't read that agreement what if all four months are due june 1st and i've seen that happen and i've seen where people were really lucky and they ended up having the money and they caught up the four months but i've seen people who didn't realize didn't read what they agreed to and were caught off guard and now they of course don't have four months at once and so what happens is you just shot your credit not a good shot not like a b12 shot of excitement right a shot of not good really bad not good larry as my husband says when they're joking he's joking with his friends not good larry not sure where they came up with that but it's kind of funny so those are a couple of the real important things to think about with those forbearances and knowing what you're agreeing to drop me a comment below please let me know if this has helped you let me know if you're in a forbearance and if you have any additional questions i will answer you personally in that comment section and if you like this video please give it a thumbs up don't forget to subscribe to the channel because i really appreciate it check out some of the other videos i'm going to put links to them here and let's also connect on social media my insta is underscore the real stephanie weeks my website is stephanieweeks.com and i would love to connect with you guys

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