All Forum Posts by: Brett Goldsmith

@Mark Horn

That's an interesting clause as that's not how things typically work.

People generally have to submit financials for review to hopefully be approved for a trail plan prior to it being implemented. Trail plans are common for most loan modifications.

I'd be surprised if they just gave everyone trail plans who wanted it. If that was the case, this would be a HUGE change from how things normally work. 

@James Carlson It's not put at the end of the loan. It's just deferred and then you need to pay it back when the forbearance plan is up in a lump sum or jump into a repayment plan where you pay mortgage payment + arrears over a period of time ( increase in mtg payment ). I'm assuming if you transition extremely smoothly into a repayment plan that you may not get monthly lates...

Other option is to attempt a loan modification if you can't afford a repayment plan. That's where they put the arrears into the loan ( capitalization ) and bring you current and they may adjust the interest rate or maturity date, etc. 

@Mark Horn Modifications are guaranteed. You read guidelines for FHA modifications. Those are typically the easiest ones to get if you STILL have stable income ( many borrowers won't ). For conventional loans with private investors, FNMA, FHLMC, guidelines are different. I see people denied for modifications on a daily basis.

Never bank on getting approved for a modification. 

@Mark Horn It will help some people, I agree.

The harsh reality is though that for MOST borrowers, once they miss one payment they don't catch up. They likely will need a loan modification. Many borrowers can't afford repayment plans. They love paycheck to paycheck and If their payment goes up a couple hundreds to catch up on arrears they will struggle. 

Yes forbearance plans likely will affect any ongoing refinances or financing. Right now they aren't reporting negatives for credit impact due to covid forbearance plans but I'm assuming they will get dinged when it ends and they don't catch up per repayment plan. 

Have you been pre qualified for a loan? I'm assuming you have if you already placed an offer on a property. Go talk to a lender.

Best regards, 

@Mark Horn I find it humorous as that's basically how FHA modifications work right now. They just added the word disaster in. Brings me back to my projection that people who get pay cuts or are still unemployed will end up in foreclosure. FHA modifications are typically the easiest ones to qualify too since they do deferments of arrears on most modifications.

Many people will challenge with the repayment plan at the end of the forbearance plan in my opinion. If they remain unemployed or get a pay cut, doing a repayment plan may not be affordable. At that point they likely need to apply for a loan modification and many will be denied to low income, unemployment, or other reasons. We will see if they roll out any sort of special repayment or modification programs.

Needs to be purchased and do a partial lien release with the IRS for their equitable position. IRS will release for their fair ( position wise ) share of funds. 

@Todd Carson You should talk to a note / foreclosure attorney about the rules an regulations regarding loans on a primary residence. They are much more strict than an investment property.

Foreclosure on a primary is similar to an investment property except that borrowers get more protection on a primary. There may be additional hoops to jump through or you may need to "review them for mortgage retention options if they defaulted.