With the current COVID-19 pandemic, I have received many questions regarding mortgage payment options during these turbulent and uncertain economic times. Here are some of the basics you need to know if you are having trouble making your mortgage payments due to unemployment and/or a loss of income.
Mortgage Deferment vs. Mortgage Forbearance
Both are a way of pausing payments.
Mortgage Forbearance – At the end of the forbearance period, the amount of payments missed are due in a lump sum.
Mortgage Deferment – Repay the money over time or add it to the end of the loan period.
Important to remember:
- Payments paused
- You still owe the money
- Nothing is free
- Communicate with your lender
- Ask questions. Don’t be shy.
- Some lenders are also offering loan modifications.