Mortgage Forbearance Impacting Credit Score?

[Jeremy Segermeister]

Hi All,

I still can't seem to get a clear answer on exactly how loan forbearance will impact credit reports (not scores). I understand it will not impact my score, however, banks will see that I am in forbearance (which has a negative connotation)

Here is my situation - I have my primary loan with Wells Fargo, an investment property with freedom mortgage, and I just closed on a lot loan with US Bank. My investment property is in Hawaii and unfortunately sitting 100% empty now. I am going to convert my lot loan into a construction to perm in a few months to build a house, likely with US Bank. 

While I *can* make all three payments, it will be painful until COVID restrictions are relaxed and I start getting income from my investment property. I put all three of my loans in forbearance recently, under the guidance that there will be no impact to my report. This sounded like a great option to help me sleep at night. 

 I just got off the phone with a loan officer at US Bank and he said that forbearance will be marked on my account, which is perceived as a negative when applying for the construction loan. They also have a policy that prevents refinancing within 15 months of a forbearance which would prevent me from getting a construction loan with them.

This was a huge shock to me. He said I should immediately call US Bank and get them to cancel the forebearance (my next payment isn't due for another few weeks). Is he correct on this? Should I remove it on just my lot loan? Or all three?

Any advice would be appreciated.