MORTGAGE FORBEARANCE

Time to revive Kona Homes’ Blog! It seems to be the easiest way to address some of today’s real estate related issues. One of the questions I am hearing from some out-of-work clients is what does Mortgage Forbearance mean.  Here is a link to an attorney’s interpretation of how the Mortgage Forbearance and CARES Act may affect you.

https://www.mangrovelegal.com/blog/caresact 

In order that it not negatively affect your credit, YOU MUST MAKE ARRANGEMENTS IN ADVANCE if you chose NOT to pay your mortgage for up to 6 months. BUT the author of the attached article is saying to approach this concept with caution. It may require you to repay all your missed payments plus the payment due at the end of 6 months. If you cannot do that it may require a modification of your loan and you might be required to “qualify” for the new payment.  Obviously if you are still out of work it could result in a huge problem as we move into the “After Corona” world. Also, The ACT only applies to government backed loans but other lenders may offer a helping hand as well.

CONTACT YOUR LENDER or the company that services your loan! One of my clients had a loan that was NOT government insured (not Fanny Mae, Freddie Mac, USDA, HUD, FHA, VA).  Since it was a portfolio loan that was held in-house by the local bank, the lender was not bound by this act to allow forbearance BUT the bank agreed to allow them to skip payments after making an acceptable loan modification up front. In the long run that was probably a better solution for all.

This also seems like a really good time to start sending out a monthly news letter with local info, real estate related Q&A and links to Monthly Sales Statisics. If you’d like to be on the email list, email Joyce@KonaHomes.NET and put NEWSLETTER in the subject line.

Malama Pono  (Take care of yourself and your family)
Joyce Murphy RB19184
Kona Homes 808-443-4302