Mortgage Forbearance Cares Act: What you need to know when considering relief through the mortgage stimulus program.

Here are my five pieces of information for anyone considering mortgage forbearance due to the Coronavirus. The mortgage stimulus program (CARES Act) provides some mortgage relief to those with changing financial situations due to COVID 19, BUT you need to make sure you have all the information before making a decision so you're not stuck owning a lump sum in just a few months.  

If you're looking for a reputable source for more information I direct my clients to consumerfinance.gov and hud.gov.

Watch the Video on YouTube: https://youtu.be/okNnU84MOs8

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Video Transcript:

Hey you, you, yeah, on the other side of the camera.

Have you been Google searching mortgage stimulus package?

Well you've come to the right place because there's a lot of mixed information and I'm gonna share with you what I know, what I don't know, what I've figured out, and send you with some resources

that hopefully can help you get your questions answered if you are searching for mortgage stimulus.

Hey guys, welcome back to your one-stop-shop for anything and everything mortgage education.

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My name is Stephanie Weeks and I am a loan officer that's been practicing for over 16 years.

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There are over 300,000 loan officers to choose from in the US.

I am here today and I have this channel to help you with anything and everything mortgage education to help you get the best feel, the best pricing, the best rate, and have a smooth closing.

Mortgage stimulus package, have you guys heard about that, seen things posted around.

There's a lot of confusion, there's really not a lot of information, so today in this video I'm gonna share with you what I know, what I don't know, some resources to check out, and also some additional information that hopefully can help you make the best decision.

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In today's video I'm gonna go through five different things I feel are important for you to know when it comes to mortgage stimulus and all the details.

Number one, do you know your loan type because your loan type actually is gonna affect what kind of assistance you may or may not be able to get.

There is FHA, VA, USDA, and conventional which is divided into Fannie Mae and Freddie Mac.

So whichever type of loan that you have actually is gonna affect what options are available to you.

So my tip for you is step number one, find out your loan type. 

You can find that out on the closing documents for your mortgage.

You can find that out sometimes on how it reports on your credit report and you can also probably log on to your servicer's websites, maybe get that information there, or even call them.

Your servicer is the mortgage company that you're making your payments to which might actually be different than the mortgage company that closed your loan because a lot of people sell the servicing.

So find out what you have because that's gonna be step number one in getting yourself some answers and finding out your options.

Step or tip number two, who is your servicer.

As I mentioned before, you may close your loan with one mortgage company and they may retain or sell your servicing.

That's who are you making your payments to each month.

So who is your servicer because that's also gonna be a crucial piece or a crucial part to

find out the information that you need about what is available to you when it comes to deferrals, forbearances, or any kind of mortgage stimulus package that might be out there that you may qualify for based on the Cares Act.

Number three, okay, what is forbearance or deferment.

That is when you're basically saying  I cannot make my payment and so I need some help, I need some reprieve, I need a break, and they may defer your payments for one month, two months, three months, they may put it to the back of your loan, all three payments or all four payments

may be due at that fourth month so find out what you're getting and avoid it if you can but a forbearance or deferral is basically putting your loan on hold when it comes to the payments.

But you're still accumulating interest, right and you still have that bill to pay, it's not free at all.

It's deferred until later.

Tip number four, let's please all work on the honor program, the honor system. 

Listen, things happen and we can't control them, but the money is still accumulating, the bills are still collecting, and your servicer or your mortgage company is still responsible to pay the debt  that they're obligated on even when you're not paying your debt.

So if you don't need the deference, don't take it.

If you don't need the forbearance, don't take it.

It helps us all.

It helps you to make sure for sure that you don't owe a bunch of payments at once.

It helps you to know for sure that you're not gonna owe more than you expect to when you go to refinance or sell and pay off that loan because you've deferred something until later and people always think that later means in 30 years but later is when you're finished with that loan which people are buying and selling and refinancing all the time, right.

So it's gonna affect you in that way.

Tip number five for today.

There is a lot of information on Google and there is a lot of information on YouTube and if you need a forbearance, you need a deferment, remember number one, what is your loan type.

RD, FHA, VA, Fannie, Freddie.

Number two, cheating on my notes, I know, who is your servicer, that's who you make your monthly payments to.

Number three, what's a forbearance, we talked about that.

Number four, the honor system.

Yes, please do the right thing.

And number five is where can we find good information on this that's, you know, that we can trust and that's not a website trying to sell us a loan or sell us some kind of product, right?

So for that I found that consumerfinance.gov, that's consumerfinance.gov, they are giving you information, they're not trying to sell you something.

That's my opinion, I could be wrong, but I think I'm right on that.

The second thing is hud.gov, that's hud.gov.

I think that's another place where you can go to get some good, accurate information on further details that you might need around this topic, and again, they're not trying to sell you a loan.

If you go to ABC 123 Mortgage, they're trying to sell you something.

If you Google search and you see ad, ad, ad, ad, ad, they're trying to sell you something so just skip beyond that, right.

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