As the forbearance period for your mortgage inches closer and closer to its end, you may be starting to feel a little stressed. This is normal as you may not know how to properly deal with this situation. And while things may seem dire, we’re here to tell you that it isn’t the end of the world. Indeed, there are things you can do to work through this situation. To help you out with this, we thought it would be useful to put together an article discussing your options. If this is something that you want to learn more about, read on as we discuss what you should do when your mortgage forbearance period ends.
Request for an Extension
If you’re still under your first forbearance period, then it’s likely that you can ask for an extension. Now, it’s important to note that an extension isn’t assured but asking for one is your best bet and should give you a little more wiggle room when it comes to your finances. To ask for an extension, you’ll have to contact your loan servicer and inform them that you’ll need to extend your forbearance period. It’s crucial that you ask for an extension if you are unable to pay as this will reflect badly on your credit score.
Figure Out Repayment
If you are unable to request an extension, then it may be worth exploring repayment options. This is a good choice as it will allow you to stay in your home. There are three things you can do to wrap up your forbearance. The first and most obvious option is to pay off all the amounts you missed all at once. You can do this by taking out a loan or other similar options. While taking out a loan to pay off a loan may seem counterintuitive, it may be worth exploring especially if you find a loan with favorable terms.
You can also opt for a short-term repayment plan or a loan modification. This will lead to a change in your monthly mortgage payments and will make up the difference for the payments that you have missed. While this may lead to you paying more every month, it will allow you to stretch the payment out for a longer period of time. Lastly, you can also request for a loan modification. A loan modification, which can include any number of changes to the terms, including extending the loan’s repayment period, lowering its interest rate, or reducing the principal loan amount.
Do you know how much home you can afford?
Most people don’t... Find out in 10 minutes.
Today's Mortgage RatesMove On From Your Home
If you can’t request for an extension and can’t come up with favorable repayment options, then it may be time to consider moving on from your home. You can sell your current houses and use the equity to help pay off their existing mortgage and possibly fund a down payment on a cheaper house.
The MidAmerica Bancorp Mortgage Team is Here for You!
Hopefully, this article proves to be useful when it comes to helping you navigate any potential issues you may have regarding your mortgage forbearance. While the situation may be rather tricky to deal with, we hope this article has shown you that you do have options for when the forbearance period ends. It’s important to note that there is no one best solution for this, and you will have to go with the solution that is right for your current situation.
Trying to find mortgage lenders? MidAmerica Bancorp, Inc. is here to help you out! We have a range of home loan and refinancing options available for Oak Lawn, Chicago, and throughout the states of Illinois, Indiana, Florida, Michigan and Wisconsin. Call us today at (708) 237-4050!
Do you know how much home you can afford?
Most people don’t... Find out in 10 minutes.
Today's Mortgage Rates