By now I’m sure you’ve heard the term mortgage forbearance mentioned in news and media articles. But what exactly does forbearance mean and is it free money? We’ve frequently been getting this question from concerned homeowners who are understandably concerned about the financial impact of the coronavirus.
In short, mortgage forbearance is an agreement between the borrower and lender to change the existing loan payment terms. It can be a great option for those who do not have the ability to meet their financial commitment because they’ve been laid off or their income has taken a blow. Although it may be the only option for some, it’s important to point out that it’s not without cost.
To give you further insight into this complicated topic, we interviewed Tom Sawyer, Resident Mortgage Loan Originator and Craig Schrank, EVP of Willow Bend Mortgage who have extensive experience with forbearance. Watch below to get their advice on the pros and cons of forbearance.
If you have any further questions or want to talk to someone about your specific financial situation, don’t hesitate to reach out! Contact your loan officer by searching here, give us a call at 972-818-1666, or fill out this form to request a callback. We’d love to hear from you.