Madison MoneySports - Personal Finance Thread

[Senor_Taylor]

Does anyone know about the FHA loan Forebearance through the CARES act? I don't want to go into details, but I just want to make sure the person I'm talking to about this is okay. I thought at the end of Forebearance, you have to pay everything you deferred all at once?

https://rd.usda.gov/sites/default/files/...rowers.pdf

"FHA does not require lump sum repayment at the end of the forbearance."

It specifically states if you were current on your mortgage as of March 1st, it is NOT required lump sum.  Looks like you got to contact them as it is an option not a clear stipulation.  Mortgage companies do want you to stay in your house, and are willing to usually work with you on a new payment plan.  However, they have to see a clear path to payment vs just extending and "hoping" for payment.

"FHA does not require lump sum repayment at the end of the forbearance, and has developed the COVID-19 Standalone Partial Claim to assist with repayment. If borrowers were current or less than 30 days delinquent as of March 1, 2020, they may be entitled to this option.

A partial claim is a zero interest, no fee, junior lien on the borrower’s property that will become payable when the borrower sells their home, pays off their mortgage, or their mortgage otherwise terminates. If the borrower does not qualify for the COVID-19 Standalone Partial Claim, FHA offers other tools to help repay missed payments over time.

For more information on FHA mortgages please call 1-800-CALL-FHA (1-800-225-5342)."

Thank you. I asked them to call and make sure. They applied last night.