Important morgage payment options

The changing environment is impacting many people due to the COVID-19 Pandemic. Almost every aspect of our lives has been changed. Countless lives have been lost. Our economy has taken a huge blow due to the financial pressures brought by this Pandemic. Our hearts and prayers go out to the families of the countless lives lost and those battling for their lives. Our prayers also go out to the many men and women who have been classified as ‘Essential’ workers. Hats off to these brave souls who are making the ultimate sacrifice on the frontlines of our communities. A substantial part of the CARES Act revolves around Mortgage payments. For current mortgage holders, several options are available. I will detail three of them in subsequent paragraphs, but I want to make it very clear that wherever possible, please make your payments and keep them up to date. There are three options; 1. Forbearance 2. Repayment Plan 3. Loan Modification.

One of the industries that have been impacted tremendously is the Mortgage and Banking Industry. As a 25+ year veteran of the Mortgage, Banking, and Community Development Industry, this is personal for me. Having lived through several market shifts, the mortgage industry is reeling at the moment. As a result, Congress passed the CARES Act (Coronavirus Aid Relief and Economic Security). This act is designed to help individuals, families, and businesses sustain our economy during the Pandemic and lay the groundwork for economic sustainability, recovery, and growth after it ends.

Forbearance – the CARES Act outlines the following: Mortgage holders can forgo making payments for up to 180 days (6 months) and then apply for an additional 180-day extension. This must all be done with the permission of the loan servicer. At the end of the agreed Forbearance period, the mortgage holder will be required to make all past due payments that have been accrued during the said Forbearance period. Additionally, Mortgage Servicers may need the mortgage holder to provide documentable proof that there was direct or indirect financial impact due to the Coronavirus before additional any steps are taken. 1.

Loan Modification – This is the option that was made very popular during the last mortgage crisis and is one where the missed payments, penalties, and fees are added to the end of the mortgage. This could be compiled as a separate and silent mortgage that must be paid when 3.

The loan is paid off via sale or refinance, or the mortgage could be re-amortized (recalculated) over the remainder of the loan terms or an extended period (i.e., from 20 remaining years to 30 years).

Repayment Plan - this will allow the mortgage holder to temporarily forgo payments and then take any missed payments and divide them up and make them over an extended period (usually 6-9 months) by adding them to the existing mortgage payment. This means that after a specified period, a mortgage holder may be asked to make the regular mortgage payment plus a portion of the missed payment (i.e., one full payment plus an additional 1/3 payment for three consecutive months). This is often a significant increase in the monthly mortgage obligation. 2.

The individual mortgage servicer must approve all of the options, and the mortgage holder should get any such agreement in writing. Many services are offering assistance, but conventional wisdom is to encourage all homeowners to make their mortgage payments as long as possible. Another option is to get help to seek the advice of your local HUD Approved Counseling Agency (www.hud.gov) and agencies in the state of California can be found at https:// apps.hud.gov/offices/hsg/sfh/hcc/hcs. cfm?&webListAction=search&searchstate=CA

Please be safe and keep your families and loved ones safe. And we will get through this together.

Cell 626-625-0099 www.AmeerElaheeHomes.com ameer@nphsinc.org or ameer@Icoachyouup.com