If you find yourself worried about your mortgage payments due to COVID-19 and the economic shift, give your lender a call and discuss the following payment solutions. There are solutions that can help you during this financial emergency created by COVID-19 and the economic shift! But you need to take action and talk to your lender about the following measures, NOW!
If you can still make partial payments, or you just need a month or two of relief, your lender may be willing to give you a forbearance. While this does NOT reduce the amount you owe, it will buy you a little time to get your finances on track before you pay it back.
Paying back the additional debt you incurred during a forbearance in one lump sum will result in a reinstatement of your original mortgage loan terms. This is an attractive option if you believe your finances will quickly go back to normal once the economy stabilizes. If you need a little more time, your lender will likely set you up on a repayment plan.
3. Repayment Plan
With repayment plans, lenders allow borrowers to gradually pay back any debt incurred during a forbearance period by increasing the borrower’s monthly payments until the additional debt has been repaid. While the additional time can be a relief, it’s important to be mindful of how much extra you’re paying in interest.
4. Loan Modification
If the previous options don’t work with your financial situation, your lender may be willing to amend your mortgage in a less concrete way. Examples include adding missed payments to your total loan and permanently increasing monthly payments, extending the length of your loan to lower your monthly payments, switching you from an adjustable-rate to a fixed-rate mortgage, and bundling taxes and insurance with your monthly mortgage payment so you can avoid spikes in your bills.
While renegotiating your mortgage loan with your lender may sound daunting, it’s important to act as soon as possible to keep missed payments from getting out of hand. If you need a little confidence boost before making the call, feel free to drop me a line at any time! I’m always here to help. 912-844-9000 ANY TIME!