Let’s talk about forbearance. A lot of people are being forced to make tough financial decisions these days and while forbearance gives you a little breathing room right now, it catches up to you. Another word for forbearance, is “delay.” Lenders are offering to DELAY your mortgage payment, for a specified amount of time. So make sure you understand when and how you’re expected to make those payments.
Say you forbear for 6 months. Often, at the 7 month the entire amount is due in fully that’s 8 total months of rent, at once
Sometimes you can arrange to spread out the delayed payments over a year. But it could make your payments higher than you ever bargained for or may be able to pay. If you can’t pay, the bank can take your house.
You may also be able to simply tack those payments on to the end of your mortgage. That doesn’t sound too bad BUT please know in most cases you won’t be able to refinance for entire length of your loan because loans that haven’t resolved forbearance aren’t eligible.
Make sure you understand the details of the repayment terms and that you they are favorable to your situation. If you’re forced to decide what bills to pay, pay your mortgage at all costs until you absolutely can’t. If you have questions about your Santa Fe home, mortgage or the Santa Fe real estate market, give me a call or shoot me a message. We’ll get through all this together.