Mortgage deferments ?

[sirbob]

So I got a call from a friend today - He says his bank called him and said, if you need three months of wiggle room you can defer the payments. He was told they would simply add those payments on the back end of the loan. I said - WHAT?

So I tried to find some info regarding how my bank (Chase) is handling these situations. I cant find anything other than a page on their web site that says here are some forms to request it. The shitty part is when they talk about repayment options - its says they will reach out at a later date and tell me my options.

I'm not about to even start a process I don't fully understand. Other things I've read say you have 9 months to pay back (not Chase) which I have no interest in, i'll just pay it now.

But if I can have 3 months payments added to the end of the loan, I'm all over that.

Anybody have real world talks with Chase in this issue?

 

[LargeOrangeFont]

I have heard zilch from Chase on the issue as well.

 

[HOOTER SLED-]

Forebearance.....ask for it

 

[EmpirE231]

It would still accrue the interest....

 

[Boat 405]

No, i looked into this as well. I thought it was the same deal that they would tack those months onto the end of the loan. Nope. US Bank, for me says they will defer fees, penalties and won't report to credit agency until Oct 1. But a LUMP SUM payment would be due for the missed months, and yes interest still accrues. So if you don't have the money now to pay the loan, you think they will magically have it all to pay back in 6 months.... LOL Shit is going to hit the fan worse than 2008....

Fuck that. the one I read from Chase was similar.

 

[Tom Slick]

This is directly from BofA:

Please note the payments will be deferred for three months, even if you only discussed a one-month deferral with us on the phone. We are taking this step for all customers who contact us and have their home loans payment deferred.

Next steps on your deferred payments:
•	Your deferral will start with your current payment due.
•	Your three deferred payments will be added to the end of your Home Loan. This means the payments are not being waived – they are being deferred to the end of your Home Loan.
•	Interest will continue to accrue during this time period.
•	We will not report deferred payments as "past due". And you will not be subject to late charges that would normally accrue.
•	During these three months, if you choose to make a payment, please do so. Your payment will be applied to your Home Loan account and will reduce your principal balance.

 

[sirbob]

No, i looked into this as well. I thought it was the same deal that they would tack those months onto the end of the loan. Nope. US Bank, for me says they will defer fees, penalties and won't report to credit agency until Oct 1. But a LUMP SUM payment would be due for the missed months, and yes interest still accrues. So if you don't have the money now to pay the loan, you think they will magically have it all to pay back in 6 months.... LOL Shit is going to hit the fan worse than 2008....

Fuck that. the one I read from Chase was similar.

Thats exactly what I'm thinking they are doing - What the fuck good is that?

I'll just pay and not worry about it. Also, I have never missed a payment on anything in my life - I don't want to fill out a credit app in the future and have to disclose this request. Heck, I was nervous looking on their web site knowing they could tell who I am even if I don't apply for any programs.

 

[Mandelon]

Apparently it depends on the loan. Some loans are owned by these entities and they can decide how they wish to do it. Other loans are merely SERVICED by your bank and are owned by hedge funds or some other investment company. Those companies can decide what, if anything they want to do. In those cases it is not up to your bank.

And regarding deferments, if the interest still accrues, you will be paying it later instead of now. It isn't three free months.

 

[sirbob]

This is directly from BofA:

Please note the payments will be deferred for three months, even if you only discussed a one-month deferral with us on the phone. We are taking this step for all customers who contact us and have their home loans payment deferred.

Next steps on your deferred payments:
•	Your deferral will start with your current payment due.
•	Your three deferred payments will be added to the end of your Home Loan. This means the payments are not being waived – they are being deferred to the end of your Home Loan.
•	Interest will continue to accrue during this time period.
•	We will not report deferred payments as "past due". And you will not be subject to late charges that would normally accrue.
•	During these three months, if you choose to make a payment, please do so. Your payment will be applied to your Home Loan account and will reduce your principal balance.

Thats not bad - Id do that program... But I don't have a BoA loan

 

[Raffit78]

This is directly from chase message center on their app.

I simply sent an email to say If they were going to do deferred payments. Yes they are. Easy as sending a private message on their app

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[FishSniper]

Scott aka Tamalewagon has posted some interesting info on forebearance and about how it would have an affect on credit down the line even if it doesn’t directly affect your score.

 

[pronstar]

Both Fannie and Freddy websites will lookup your loan to see if they own it.

If they do, and you pay a servicer, then Fannine and Freddie will dictate what is available to you, but it will come to you thru the servicer.

In our case, Fannie owner ours. So I started the ball rolling with my servicer.


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[FishSniper]

Scott aka Tamalewagon has posted some interesting info on forebearance and about how it would have an affect on credit down the line even if it doesn’t directly affect your score.

This is the info that he had posted re forebearance. Forbearance. Good idea? Not if you can still afford your payments. Be cautious, forbearance shown on a credit report has never been favorable for qualifications in the eyes of an underwriter. While it may seem like deferring your loan payments could be a mark against you in the eyes of the credit bureaus, in reality, forbearance does not affect your credit score. It does however, affect your ability to qualify for future loans and other forms of credit, and can lead to getting charged much higher interest rates. In short, in the eyes of an underwriter, this means you cannot make your payments in good faith. It may be harsh especially for those that need the forbearance, but it reality.

 

[sirbob]

This is directly from chase message center on their app.

I simply sent an email to say If they were going to do deferred payments. Yes they are. Easy as sending a private message on their app

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Yes - Ive seen that on their site already.


This is the part I don't like...

WTF does that mean?

Like I said above - I don't want to request anything that I don't understand what the consequences are down the line. Thats why I left their web site before I triggered some thing I don't want - Like it says in your text they sent you. Sounds like your in the program now - I hope thats what you wanted?


I don't want a lump some bill in 120 days
Or payable with in 12 months
I don't want to have to disclose this on credit apps in the future as a hardship or something similar
Etc.

 

[Fun Times]

Not sure if the status quo of the coronavirus deal would of put a different legal outcome towards the deferring of payments to the end of the loan but the following info could be of concern to consider too?? ...Edit [U]FishSniper[/U] beat me to the info provided by Tamalewagon the other day.

Forbearance. Good idea? Not if you can still afford your payments. Be cautious, forbearance shown on a credit report has never been favorable for qualifications in the eyes of an underwriter. While it may seem like deferring your loan payments could be a mark against you in the eyes of the credit bureaus, in reality, forbearance does not affect your credit score. It does however, affect your ability to qualify for future loans and other forms of credit, and can lead to getting charged much higher interest rates. In short, in the eyes of an underwriter, this means you cannot make your payments in good faith. It may be harsh especially for those that need the forbearance, but it reality..,https://www.riverdavesplace.com/forums/threads/mortgage-rate-update.54828/post-3658069.

 

[Havasu blue label]

It will be on the last 3 months of loan additional 100 hundred dollars for6 month will eat the interest up great opportunity

 

[BONER]

Debt Relief

So the wife is out of work now for who knows how long. Thought this thread might be helpful if members post up any first hand experiences with debt relief. Thinking about calling the mortgage company to see if they are going to offer any type of payment holiday for individuals affected over...

www.riverdavesplace.com

 

[Havasu blue label]

Does not affect credit score or any hits on it it’s in house

 

[riverroyal]

Relieve 3 payments you can expect them to NOT wait 20 years to be paid back. No way.

 

[riverroyal]

It will NOT lower credit score. But it WILL show on your credit report. Just like the modified morgage thing years ago

 

[zhandfull]

Think things are bad now? Just wait till all the forbearance bills come due 90 days out. If the lenders don't offer a deferment at the end, I can't even imagine the number of foreclosures that will be taking place.

 

[Riverfamlee]

Think things are bad now? Just wait till all the forbearance bills come due 90 days out. If the lenders don't offer a deferment at the end, I can't even imagine the number of foreclosures that will be taking place.

Exactly! I wouldn't trust any of those mofo's to work with you after the forbearance is done. Now you're down 3 payments and they throw up the middle finger- No thanks. I don't even understand why that's an option. No one is getting any lump sum back pay when this is all said and done. If they don't have it now why would they have it x3 in 3 months?

 

[Tamalewagon]

All forbearance payments must be brought current BEFORE a new loan can fund.

 

[troostr]

This is directly from BofA:

Please note the payments will be deferred for three months, even if you only discussed a one-month deferral with us on the phone. We are taking this step for all customers who contact us and have their home loans payment deferred.

Next steps on your deferred payments:
•	Your deferral will start with your current payment due.
•	Your three deferred payments will be added to the end of your Home Loan. This means the payments are not being waived – they are being deferred to the end of your Home Loan.
•	Interest will continue to accrue during this time period.
•	We will not report deferred payments as "past due". And you will not be subject to late charges that would normally accrue.
•	During these three months, if you choose to make a payment, please do so. Your payment will be applied to your Home Loan account and will reduce your principal balance.

This seems like a no brainer if you need it or not! I'm not credit guru, so someone correct me, but if you did this and still made all your payments, wouldn't you be money ahead in interest? or would it be a wash? With all of your interim payment going directly to principle, but ballance still accruing interest, you would pay down more principle than a regular payment, lessening your overall interest.