The Mortgage Forbearance Deadline Was Just Extended. But There May Be Better Options — Money
- March 2, 2021
- By: Greenpath Financial Wellness
Money Magazine shares GreenPath’s advice when it comes to evaluating and appling for mortgage relief options.
With government-backed mortgage forbearances extended, Money Magazine highlights the factors to consider if you are planning to take advantage of the relief measure.
Once your forbearance has ended, you will need to make up for those missed payments. In most cases, you can’t be required to repay them all at once, but you might need to get on a short-term repayment plan, take out a second loan, spread your missed payments out over your remaining loan term, or tack them on the end of your loan.
Experts say forbearance is best for short-term hardships, but if you’re expecting a longer-term struggle, it might be time to look at other options.
Kristen Holt, president and CEO of the Homeownership Preservation Foundation and GreenPath Financial Wellness, shares why speaking with a housing counselor can be a good place to start.
“We help borrowers plan and take steps to catch up and maintain their housing payments, resume payments once forbearance ends, understand mortgage terms and interest rates, and avoid scams,” Holt said.
If you think counseling may be a good option for you, Holt recommends being proactive — don’t wait until you’re out of options or your forbearance plan is about to expire to seek help.
MY MORTGAGE FORBEARANCE IS ENDING. WHAT’S NEXT?
Learn from an online course to understand the options you may have available to you. Get suggestions for the next steps that are most aligned with your goals.
Here are additional options to consider:
- Modify your loan.
- Rent out part or all of your property.
- Sell your house.
- Talk to your loan servicer.
If you’re struggling financially, applying for mortgage forbearance can be a good way to find temporary relief, but will expire at some point. It’s important to be proactive, and talk to your loan servicer and a housing counselor as soon as possible.
We’re Here for You
You may find it helpful to reach out to the Homeowner’s HOPE™ Hotline: 888-995-HOPE(4673). Our counselors have helped thousands of people in similar circumstances identify and weigh their options, and we can help you, too.
Caring counselors help people develop a budget that works for their specific circumstances, intervene with loan servicers to identify available loan modification options and create a plan to move forward after forbearance.
Read Kristen’s full bio here.