During the global pandemic most Americans faced joblessness and needed financial support. At that time, CARES Act 2021 was passed, which offered forbearance mortgages. Under mortgage forbearance, the lender or mortgage servicer allows the borrower to rebuild their financial status.
During this process, the borrower cannot pay the mortgage while the servicer reduces or temporarily suspends your mortgage payment. The CARES Act provided forbearance only to those who provided evidence to prove financial hardship; however, the act was only set up for 18 months. If you are coming out of mortgage forbearance, here’s what you should do.
Evaluate Your Financial Capacity To Keep Paying The Mortgage
You might have financially recovered if you applied for the forbearance program during the pandemic. However, it can be difficult to keep paying the mortgage if you still haven’t found a job or are still paying off debt.
To ensure you can bear the weight of your mortgage, start by assessing your bank account and financial status. Knowing your financial position will help you understand if you can continue paying your mortgage. You can do a few things if the financial situation doesn’t allow you to pay your mortgage.
Get Help From Your Loan Servicer
If your forbearance program has ended, talk to your loan servicer and explain your situation. Loan servicers manage your loan.
Moreover, loan servicers have to help borrowers whose forbearance program has ended or those coming out of mortgage forbearance. They collaborate with the borrowers and ensure they stay in their homes.
The loan servicers help to negotiate and modify the terms and conditions of your mortgage payments. Other than that, loan servicers can also extend your mortgage period, allowing you to manage mortgage payments and keep up with them easily.
Hire A Real Estate Agent To Sell Your House
If you are coming out of forbearance and are sure that your current job or financial status is not enough to pay the mortgage, the best option to manage mortgage payments is to sell your house. Currently, house prices are very high.
All you need to do is hire a real estate agent and put your house on your sale. This way, you can start fresh and find a less expensive place.
Top Five Mortgage Lenders
Whether buying a home for the first time or renting a property, it is crucial to find the best mortgage lenders. Here we have mentioned our top five best mortgage lenders.
1. Rocket Mortgage: It is an excellent choice if you have a lower credit score.
2. Chase Bank: This bank allows flexible down payment. Chase can help you calculate your monthly payment and determine which house you can afford.
3. Ally Bank: The bank offers a mortgage program that supports low- to mid-income repeat or first-time buyers.
4. PNC Bank: This is an ideal choice for flexible loan options; additionally, the bank helps you through all steps in the process.
5. SoFi: It is an online lender and is perfect for money saving. The program offers low down payments and flexible terms.
Coming out of mortgage forbearance can put you in a difficult situation; however, there are a few ways to manage it. Start by assessing your financial situation and ask a loan servicer to assist you. Other than that, you always have the option to sell your home.