Forbearance Agreement Cares Act

“Leniency is not a mortgage. Borrowers will always be liable for the principal and interest they did not pay during the leniency period,” Kim said. “From the day you seek leniency, you are entitled to this indulgence for up to one year, with an extension after the first six months of your indulgence,” explains David Shapiro, President and CEO of EquiFi Corporation. If you are ready to complete your indulgence in time, after six months, be prepared for what will happen next. The second part of the assistance program gives you an option to reduce the mortgage payment by distributing future makeup payments over 12 months or adding to your mortgage payment after the reduction period has expired. You should not have to pay a lump sum at the end of the late payment period, so make sure you receive this agreement in writing. Coronavirus Aid, Relief and Economic Security (CARES), adopted last March, contained $2 trillion in special assistance for homeowners. The CARES Act makes it easier for owners affected by the pandemic to search for the possibility of leniency of up to six months, and then to add an additional six months if the homeowner is still not financially able to meet his mortgage obligation on time. A: No.

A service provider must grant leniency to any applicant borrower with a government-guaranteed mortgage that certifies a hardness associated with COVID-19, regardless of offender status. For those who will leave the mortgage leniency in the coming months, it may be possible to reduce your mortgage payments below the pre-pandemic level. A recent Report by Construction Coverage examined mortgage crime rates in all 50 states and presented figures released by the Federal Reserve Bank of New York, in line with those published by CoreLogic, a real estate data clearing center. The Federal Reserve reported a 15-year low in the mortgage rate. However, the leniency of the CARES Act had a direct impact on reported crime rates. CoreLogic, on the other hand, found an alarming rate, where leniency was not a factor. For example, Pennsylvania, which had reported the 15th highest crime rate in the nation with 1.13 percent. The CoreLogic report also found that the unemployment rate in Pennsylvania was 15.6 percent in April 2020. This rate has now fallen to about 8.1%.

The mortgage crime rate in West Virginia was recorded at 1.24 percent, with an unemployment rate of 15.8 percent in April 2020.