Forgiveness or Forbearance? What You Need to Know.
Know the different mortgage relief options so you can make the best choice.
Forbearance 
This is the plan everyone is talking about since the passage of the CARES Act. It’s an agreement with your lender to reduce or delay regular payments for a set time. When the forbearance period ends, the postponed payments will be due all at once.

Modification 
This is a legal process that alters the terms of your loan. For instance, a modification could lower your monthly payments by lengthening your loan term.

Deferment
This is a plan that allows you to postpone your payments for a set time then pay them at the end of your regular loan term. “Deferments” and “forbearances” are often used interchangeably, but they are different. A deferment is more beneficial for many because it eliminates the need to make up multiple payments at the end of a short postponement period. Deferments are not available from all servicers.

Payment Assistance Program
This is an arrangement that allows you to make up your postponed payments at the end of a forbearance period by spreading the cost over a period of time. Payment Assistance Programs are not available from all servicers.

Cash-Out Refi or Home Equity Line of Credit (HELOC)
If you still have enough income to qualify, accessing the equity in your home by refinancing or obtaining a secured credit line may be a good option for lowering your payments, consolidating other debts, and/or creating a cash cushion. A refi will be especially beneficial if current rates are lower than those on your existing financing.


To set up the other options listed here, please reach out using the contact information on your monthly loan statement.
 Document all calls and agreements, then check your monthly statements and credit reports to asset changes are reported correctly.
I hope this helps you understand the available options. If you have any questions, please reach out or If you want to discuss your options for a refinance or HELOC we can put you in touch with a highly qualified mortgage professional to help you decide what is best for you during these unusual and difficult times.
This info brought to you by First County Mortgage- an affiliate of C21NM.