How to cut mortgage expenses ASAP!

[Scott McElhaney]

Over the last two weeks I have had an open dialogue with all of our mortgage lenders.  I've found regardless of bank/lender size all of our lenders have been very open to assisting us in minimizing or deferring payments until the Coronavirus pandemic subsides.  If you haven't spoken with your lenders you should do so ASAP as this is not a time to "cross fingers" and hope things work themselves out. This is a time to be very proactive, minimize costs and manage cashflow.

Here's a few things I would suggest when contacting your mortgage lenders:

-Speak candidly to your Lender about any upcoming issues you foresee as a result of the Coronavirus pandemic.  If one or more of your tenants has stated they can't pay in April or the foreseeable future then relay this to your Lender;

-Ask your Lender if they currently have or plan to have a "mortgage relief program."  In my experience some Lenders have already rolled out payment relief programs and can immediately assist you in temporarily lowering your payments or deferring them for a set period of time;

-Realize that any relief program offered by a Lender is as dynamic as the Coronavirus.  In other words, it's subject to change.  I've had Lenders initially offer us an Interest Only (IO) Period and state that if things worsen with the pandemic that they'll most likely convert to a Deferral Program;

I hope the above information is helpful.  Please comment with any specific questions and I'll be happy to respond.