The Truth About Forbearance
What the banks don’t want you to know
The law is out. There will be no more evictions. There will be no new foreclosures for the foreseeable future. Forbearance is being offered to any homeowner.
But what happens when the forbearance ends and life turns back to closer to how it was back in January?
Forbearance doesn’t mean forgiveness, so it’s essential to plan ahead. When the forbearance period is up, the banks are going to expect payments to start coming in. Thankfully there has been some guidance from Fannie Mae and Freddie Mac that specifically says you will not be required to pay the missed payments all at once.
But that doesn’t change most banks’ point of view. They see forbearance as the first step towards default, with a default being the first step to foreclosure.
Think twice before you accept forbearance in Florida
Forbearance seems like a good option, but you should only take forbearance if it’s your only option. Though it may seem like a good option when everyone is doing it, you need to be aware that once the forbearance is over, it may complicate your ability to sell your home or get a new mortgage. “The requests for mortgage forbearance skyrocketed by 1,270% between the weeks of March 2 and March 16, and by another 1,896% between the weeks of March 16 and the week of March 30, according to the Mortgage Bankers Association.” Those numbers are huge and we just have to hope and pray that we don’t see the same kind of foreclosure rate after all is said and done that we saw in 2008. Hopefully, we’ve learned a little since then.
At Jacobs Legal, we’ve seen the devastating effects of forbearance and the subsequent foreclosures. We watched with horror as both banks and lawyers foreclosed, happily took clients’ money and rushed through paperwork and proceedings as millions of people lost their homes.
We don’t want to see this again. We don’t want to see this happen to you. We are working harder than ever during the pandemic to help people, who are experience hardship and trying to make ends meet. We are here for you. If you have any questions about forbearance, please call us before you find yourself into the deep end.
Remember, forbearance does not mean forgiveness. But here at Jacobs Legal we have your back in times of need. Stay healthy and stay smart.