At the start of the coronavirus pandemic, many Agua Dulce property owners went into mortgage forbearance. This program was offered by the federal government and allowed homeowners to stop paying on their mortgages without facing either foreclosure or dings to their credit scores for up to one year. Any homeowner with a mortgage backed by Fannie Mae, Freddie Mac, the Federal Housing Administration, and the US Department of Veterans Affairs could request forbearance. Many privately held mortgages were also eligible, though that was up to individual banks. The mortgage forbearance program is designed to help people hold on to their homes, even if they experience unemployment or loss of income due to the coronavirus.
Mortgage Forbearance Helps You Keep Your Agua Dulce Real Estate
Now that California is slowly coming out of the pandemic lockdown, people are getting back to work. If you went into mortgage forbearance on your Agua Dulce real estate, you might be wondering whether it makes sense to leave the program. Everyone’s circumstances are different, so it’s hard to give a definitive answer. However, with so much uncertainty about what the future will bring, it may make sense to stay in forbearance. You can certainly start or keep making payments on your mortgage in forbearance. In fact, many home owners have done that.
Forbearance is not mortgage forgiveness, so you will have to make the payments eventually. There are several different repayment options. The simplest for most people is to simply extend the term of the loan. So if you skipped four months worth of payments, you would simply add those months to the end of the loan. If you sell your Agua Dulce property before you’ve paid it off, you will have to cover the missed months at the time of sale.
Since there are no penalties for mortgage forbearance, it may be a good idea to remain in the program and make as many payments as you can. That way, if you do suffer loss of income, you won’t have the added stress of contacting your lender to set it up.