Mortgage relief from banks: Forbearance vs Deferment

[Dave Poeppelmeier]

Hello to all new or newer investors! Just an FYI, I have loans on most of my houses, both 30 yr fixed residential loans that I took out in my own name and commercial loans through the business but personally guaranteed. My commercial banker is helping me apply to defer the loans, meaning the payments are deferred to the end of the 10 yr balloon note (but still accruing interest). I was able to email him directly and get this going immediately. My smaller mortgage bank, after trying for days and finally talking with someone, is only offering forbearance, which means you have to pay 4 months of mortgage all at once at the end of the CARES act 3-month period. You "may" have the option to do something at the end of the period but absolutely no guarantees. Fortunately most of my tenants are able to pay for now, but I'm planning for the worst and hoping for the best.