Debt Relief

[EBT531]

A friend of mine was told by bank of america that the deferred payments are due at the end. Meaning, they delay the payments for 90 days but you now owe all three payments at the 90 day mark?

 

[DrunkenSailor]

A friend of mine was told by bank of america that the deferred payments are due at the end. Meaning, they delay the payments for 90 days but you now owe all three payments at the 90 day mark?

Mortgage companies typically do not do a pure deferment in the traditional sense like a student loan. A deferment on a mortgage would require modifying either A) your maturity date as resuming your regular monthly payment after a period of time would make your maturity date on your mortgage and note no longer valid or B) would require a balloon rider be added to your mortgage note indicating that there is an additional amount owed at the end of your term. Deferments are typical in refinances or in conjunction with another option like a modification and typically will defer the payment for a period of +-30 days.

That said this situation is different and non traditional deferments are being offered due to Covid. California has a 90 day deferment program that will allow homeowners to miss payments for 90 days that has been put in place with most banks. This program has just been enacted and I cant find the actual act just news puff pieces on it. I do not know what will be required at the end of the deferment period.

In a traditional forbearance which will require you to enter into a repayment plan once the forbearance is complete. This will increase your monthly payment for a set period of time while you pay back the delinquent amount or more commonly would be a modification to rewrite the terms of the loan including the past due amounts.

Before you agree to any suspension of payments make sure you know when that money is due and what documentation you will be receiving to execute.

 

[Tom Slick]

A friend of mine was told by bank of america that the deferred payments are due at the end. Meaning, they delay the payments for 90 days but you now owe all three payments at the 90 day mark?

If you have a B of A mortgage and are current, they will defer you monthly payment on a month to month basis. You can start immediately and will need to call them every month here after to continue. Your interest will be added to the end of your loan. They do not contact credit agencies, or report it. The interest is not compounded. Hope this helps.

 

[Joker]

I’m not sure why people don’t have funds set aside for shit like this. How can you own a house and not have money to cover a few months of hardship?

 

[RCDave]

I’m not sure why people don’t have funds set aside for shit like this. How can you own a house and not have money to cover a few months of hardship?

THIS

 

[HOOTER SLED-]

I’m not sure why people don’t have funds set aside for shit like this. How can you own a house and not have money to cover a few months of hardship?

Some folks don't ball like you homie....

 

[Tom Slick]

I’m not sure why people don’t have funds set aside for shit like this. How can you own a house and not have money to cover a few months of hardship?

For me it was because my business was crushed in 2007/8 and all of my savings was used up trying to survive. I did not go delinquent on any payment, accrued massive debt trying to stay afloat and I didn’t BK like most did. So in a nutshell I’m still paying off all of that debt from the Great Recession and have run out of time to build up a cushion before this mess started. Glad to hear the rest of you are doing well.

 

[rivrrts429]

I’m not sure why people don’t have funds set aside for shit like this. How can you own a house and not have money to cover a few months of hardship?

I agree but this shit is unprecedented.

A month ago I would’ve bet the house this thing wouldn’t collapse our country. I’m grateful we’re considered essential at work and I’m grateful I’ve got cash flow to weather this for a while but completely understand how people can get behind quickly if lower, or even a single income, living in California.

 

[Tom Slick]

I agree but this shit is unprecedented.

A month ago I would’ve bet the house this thing wouldn’t collapse our country. I’m grateful we’re considered essential at work and I’m grateful I’ve got cash flow to weather this for a while but completely understand how people can get behind quickly if lower, or even a single income, living in California.

Or self employed and when shit like this happens your business that was jammin two weeks ago is now at a stand still.

 

[Joker]

Or self employed and when shit like this happens your business that was jammin two weeks ago is now at a stand still.

I never had it take 10 years to recover from the last recession. Keep your company small and you’ll make it through these times. Low overhead is key.

 

[Joker]

For me it was because my business was crushed in 2007/8 and all of my savings was used up trying to survive. I did not go delinquent on any payment, accrued massive debt trying to stay afloat and I didn’t BK like most did. So in a nutshell I’m still paying off all of that debt from the Great Recession and have run out of time to build up a cushion before this mess started. Glad to hear the rest of you are doing well.

What do you do? If there’s something we need I’ll see if you can help.

 

[Tom Slick]

What do you do?

I’m a one man show that has my own product line used for hauling motorcycles and gear. Essentially I sell products that people don’t require in times like these.

 

[Havasu blue label]

Correct joker small is the key and job schedule

 

[Joker]

I’m a one man show that has my own product line used for hauling motorcycles and gear. Essentially I sell products that people don’t require in times like these. www.ccrsport.com

I hope things get better sooner than later for you. If you were in construction i would do what i could to help.

 

[Tom Slick]

I never had it take 10 years to recover from the last recession. Keep your company small and you’ll make it through these times. Low overhead is key.

Trust me, prior to 2007/8 making money came easy to me. My little business was growing 20-30% year over year until the crash and business dropped 70% over night. I threw money at my business trying anything I could to sustain and even try to grow but all attempts back fired. Unfortunately for me I dug a pretty big hole that I’ve been digging myself out of ever since. Business has been great the past 3 years and I was starting to see light at the end of the tunnel until 2 weeks ago. I need to come up with some essential / non recreational products haha!

 

[Tom Slick]

I hope things get better sooner than later for you. If you were in construction i would do what i could to help.

Appreciate the offer. All good for now as long as we can get the country back up and running sooner rather than later. Thankfully my wife is a nurse, so we don’t have to worry about her.

 

[Riverbound]

I’m not sure why people don’t have funds set aside for shit like this. How can you own a house and not have money to cover a few months of hardship?

I have to say I’m glad I’m not the only one. Just catching up on the board and ram accords this thread. We aren’t even in the beginning of this mess and people are all over not making payments. And then In another thread on this same board, all these MOFO own their house out right and pay cash for all their toys.

Reminds me of the joke I heard recently. How much does it cost for a republican to become a socialist?

$1200 and $500 per child.

 

[Havasu blue label]

Correct a true republican don't take free shit

 

[Riverbound]

I’m not sure why people don’t have funds set aside for shit like this. How can you own a house and not have money to cover a few months of hardship?

Seriously....it’s been a couple weeks. I haven’t even had to make a mortgage payment since this all this started and people are looking for bail outs already. Maybe it’s a sign you can’t afford your lifestyle.

 

[nowski]

Since were talking debt relief, property taxes are do in Ca next month I doubt we'll see any relief there...

 

[LAZARUS]

How is thread even an issue? Most people on RDP own their house, boat and cars outright.

 

[crzy2bealive]

How is thread even an issue? Most people on RDP own their house, boat and cars outright.

Lol that's what I was thinkinh

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[BONER]

I’m not sure why people don’t have funds set aside for shit like this. How can you own a house and not have money to cover a few months of hardship?

Sometimes, shit happens Man. I started a fresh Career, new Baby, and bought my first House not too long ago. Not making excuses, but I don't live outside of my means. Only actual Debt I have is a Mortgage and one Car Payment. With no information on when this shit will blow over, some breathing room will help me sleep at night.

The timing couldn't be worse, for me. This hit right as I was rebuilding and starting build some momentum.

Your point is very valid though.

 

[Boozer]

I’m not sure why people don’t have funds set aside for shit like this. How can you own a house and not have money to cover a few months of hardship?

Fortunately a lot of people do but if you can pull 3-4 months of payments off the calendar with no interest or penalties why not do it?

I don’t know about the rest of you but I don’t have infinite savings. I’m more insulated from this thing than most people are but that doesn’t make me invincible. If this thing carries on and kills my job or my business I’m going to be up shit Creek in about 9 months. 3 months of deferred payments, the stimulus and the wife’s boosted unemployment buys us 4-5 extra months so we can easily weather a year plus of this shit if I were to lose my job.

Seems like a no brainer deal to me. In this situation I’m not having to buy more time. It’s being given to me interest free, all I have to do is ask for it.

In the case of many other people they live paycheck to paycheck and don’t have any way around it. A family making $120K a year in SoCal is barely making it these days. If they lose even half that income they’re completely f*cked and that seems to be the case for a lot of people.


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[pkrrvr619]

I called around to see what was being offered as I wanted to exploit this to defer mortgage payments and use it to put that towards other things (boat, car).

However we fell into the bank category that its a forbearance and not deferment so after 90 days it would be a lump sum. Didn't pencil out so we will just continue to pay our monthly bills.

 

[Boozer]

I called around to see what was being offered as I wanted to exploit this to defer mortgage payments and use it to put that towards other things (boat, car).

However we fell into the bank category that its a forbearance and not deferment so after 90 days it would be a lump sum. Didn't pencil out so we will just continue to pay our monthly bills.

That’s where we are with the mortgage and one of the car notes right now. They’ll still be paid on time every month unless things change.

If we can defer without interest we’ll do it. If interest still accrues it’s not worth it.


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[zhandfull]

I never had it take 10 years to recover from the last recession. Keep your company small and you’ll make it through these times. Low overhead is key.

Do you own a business?

 

[zhandfull]

BofA is now offering three months of mortgage payment forbearance when you call.

As a reminder that should not be confused with forgiveness. The missed payments will still have to be paid in a lump sum, spread out over time, or possibly included in a loan modification at the end of the forbearance time period.

 

[Joker]

Do you own a business?

Yup

 

[Joker]

BofA is now offering three months of mortgage payment forbearance when you call.

As a reminder that should not be confused with forgiveness. The missed payments will still have to be paid in a lump sum, spread out over time, or possibly included in a loan modification at the end of the forbearance time period.

at least you got through. I’ve been calling Chase all week to get refi quotes and the hold time is 5 hours.
i called early today and had a 45 minute hold time. 3 hours went by and they disconnected my call.

 

[Tom Slick]

I had luck getting through to B of A last Saturday by calling the customer service phone number that is shown on my monthly mortgage statement. I got to an agent within a minute or two. I told him that I expected to be on hold for quite some time and he said had I called Monday through Friday I would have been, but for some reason they weren't all that busy on the weekend. So maybe a call to your lender tomorrow would help.

With regards to B of A, I was told that they will defer the monthly payment on a month by month basis and that I would need to call them each month that I wished to defer. You are however accruing interest for each month and the interest will be tacked onto the end of the loan. So if you sell or refinance your home you will be required to pay the interest. They do not contact or report the deferment to the credit bureaus. The interest is not compounded. To qualify your loan needs to be current and in good standing.

 

[BONER]

Went online to view my Mortgage Account. It said I was approved but the details are in the paperwork that are in the mail. I'm going to pay it regardless, on the 1st. But I'm curious what the details are. Only detail I know is that it's a Forbearance. I'll post up when I get the Paperwork.

Went online to check the Car Note too. 100% deferred till July. No questions asked. No penalties.

 

[Tom Slick]

Update: BofA just updated their deference slightly. Rather than going month to month they are going 90 days deferred from the day you sign up. Your monthly payments are added to the end of your loan along with the interest.

 

[pronstar]

Update: BofA just updated their deference slightly. Rather than going month to month they are going 90 days deferred from the day you sign up. Your monthly payments are added to the end of your loan along with the interest.

BB&T did the same for a car loan for us.

And Discover Card gave me 0.99% APR for 60 months on my outstanding balance.


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[BONER]

I still haven't gotten any paperwork from my Mortgage Company. Got an email yesterday talking about the Forbearance and what not.

I got Furloughed on Tuesday. So kinda glad I got all this shit deferred last month, as a backup. I paid this Months Mortgage because it's a Forbearance and not a Deferment. I said fuck the Car Note, as it is a Deferment.

 

[pronstar]

I’m going to take advantage of any deferment that doesn’t negatively impact my credit score.

I want to hoard as much cash as I can, who knows when I’ll be able to generate more income...

At least we can count on my wife’s income. If her company closes, the global markets will have crashed, stock trades will be impossible, and the banking industry will be gone.


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[zhandfull]

My experience is the mortgage companies are offering a forbearance with the possibility of a deferment at end of the forbearance period.

It was worded along the lines of three possibilities at end of forbearance period.

* Pay the lump sum balance at the end of forbearance
* Arrange a short term payment plan to increase monthly payments to repay forbearance amount
* Modification of loan terms to extend loan maturity date (deferment)

99% of the people that get a forbearance will be up shit creek if they don't get offered a loan modification (deferment) at the end of the forbearance period.

 

[Havasu blue label]

You need to state can we add to the end of loan

 

[lbhsbz]

Since were talking debt relief, property taxes are do in Ca next month I doubt we'll see any relief there...

I sent mine in 3 weeks ago along with a few other checks...property tax check has not been deposited as of today, although the others were. Either it's lost or they're providing relief on their own.

Edit: Property tax check just cleared this morning. yay.

 

[RCDave]

Ya want debt relief? Pay off the debt!

 

[WATERDOG]

Or self employed and when shit like this happens your business that was jammin two weeks ago is now at a stand still.

No kidding. Riches to Rags over nite.