Why Most in Forbearance Won’t Lose Their Home
To be eligible for a mortgage you would need to
Non-Prime loans have the option to refinance without having to make 3 consecutive payments after a Forbearance. 3
Forbearance is a temporary postponement of loan payments granted by a lender instead of forcing the borrower into foreclosure or default. The terms of a forbearance agreement are negotiated between the borrower and the lender. The borrower must demonstrate the need for postponing payments, such as financial difficulties brought on by a major illness or the loss of a job. Mortgagors whose loans are backed by government programs and are affected by COVID-19 may qualify for relief.
Which Loan Programs would work best for you After a Forbearance?
Most people in Forbearance Already Caught Up on Payments
According to the Mortgage Bankers Association (MBA), data through March 28 show that 48.9% of homeowners who have already left the program were current on their mortgage payments when they exited.
Banks Don’t Want the Houses Back
Lending institutions don’t want the headaches of managing foreclosed properties. This time, they’re working with homeowners to help them stay in their homes.
If All Else Fails, Homeowners Will Sell Their Homes Before a Foreclosure
Homeowners have record levels of equity today. According to the latest CoreLogic Home Equity Report, the average equity of mortgaged homes is currently $204,000. In addition, 38% of homes do not have a mortgage, so the level of equity available to today’s homeowners is significant.