Rental Property Investor · Member since 2019 · 46 posts · 8 votes
Hey everyone!
One of properties is an STR and has been affected by the current market. The unit is not performing well enough to cover expenses. SO our mortgage company has offered to place us in forbearance ( will explore other options later.). They say it won't effect our credit, we are closing on the sale of a home next week that will give us more capital to purchase an investment property in 30-60 days (1031 exchange).
The question is will the forbearance effect our ability to get another loan. I understand endo to the XARES act they can’t report to credit. But will other lenders see that we are in forbearance and decided not to lend to us?
One of properties is an STR and has been affected by the current market. The unit is not performing well enough to cover expenses. SO our mortgage company has offered to place us in forbearance ( will explore other options later.). They say it won't effect our credit, we are closing on the sale of a home next week that will give us more capital to purchase an investment property in 30-60 days (1031 exchange).
The question is will the forbearance effect our ability to get another loan. I understand endo to the XARES act they can’t report to credit. But will other lenders see that we are in forbearance and decided not to lend to us?
Thanks!
Skye
Under the CARES Act, there should be no negative impact on a borrower's credit score for payments missed during an approved forbearance, but it may be reported and this could be scrutinized by the next lender. They may ask for a higher down payment and or reserves. At this point is hard to know.