Coronavirus End of Forbearance Options
What are the options once the coronavirus forbearance is complete?
For loans in a coronavirus forbearance program, payments have been postponed and will need to be repaid. Repayment options once the forbearance period ends may include:
- Repaying the missed payments at the end of the forbearance
- Setting up a repayment plan where the missed payments are repaid gradually while paying the regular monthly payment1
- Moving the missed payments into a deferred balance fully due upon the maturity date of the loan or earlier upon the sale or transfer of the property, refinance of the loan, or payoff of the interest-bearing unpaid principal balance2
If none of these options work, we may be able to set up a modification to change the loan in order to lower the monthly mortgage payment by reducing the interest rate or extending the term of the loan.
There are additional eligibility requirements for these programs. Please contact us to learn more.
There are no fees and no minimum credit score requirements with these programs. However, you may be responsible for certain costs, expenses, and fees associated with the servicing of the loan that were incurred before the application for the modification is completed and approved (such as foreclosure attorney fees). When the modification becomes final, all prior unpaid late charges will be waived.
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When you call us to discuss post-forbearance payment assistance options, please be ready with the loan number, the monthly pre-tax income for each borrower, monthly household expenses, and information about your current financial hardship.
We’ll review your situation, confirm your interest in a modification and, if required for the program, send you a financial information packet.
Throughout the process, you'll have a Customer Relationship Manager who will answer all your questions and help guide you through the steps you'll need to take.
If you receive a financial information packet, you’ll need to complete, sign, and return the forms, along with any other documents that are requested, to us as soon as possible.
After we receive your documents, we’ll contact you via phone or mail within five business days if any documents are incomplete or missing.
Once we have all your required documents, it may take us 30 calendar days to complete the evaluation process and notify you of our decision.
A three-month trial period may be required by the modification program to ensure the new payments are affordable.
We'll send you a Trial Period Plan Notice explaining the terms, such as the monthly payment amount, the deadline to accept the trial plan terms, and the date the first trial payment is due. Payments can be made through Online Banking, by mail, or over the phone.
Once all trial payments have been made on time, we’ll send you the Modification Agreement.
The Modification Agreement defines the changes to the home loan. This agreement may need to be signed, notarized, as required, and returned to us by the stated deadline for the modification to become permanent.
Once completed, we are required to report the modification to the credit bureaus, which may negatively impact your credit.
What if I'm not eligible or get declined?
If your financial circumstances change, we may be able to reevaluate the loan for a program.
If we can't find another affordable option that works for you to stay in your home or if you no longer wish to remain in the property, please contact us to discuss the options to settle home loan debt.
1 Number of months for repayment varies based on individual investor or insurer guidelines.
2 Available for Fannie Mae and Freddie Mac loans.
3 These eligibility requirements are informational and are not intended as a commitment to modify your home loan nor is this an exhaustive list of the eligibility of these programs.
4 Some programs offered on Fannie Mae and Freddie Mac loans do not require a previous forbearance to be eligible.