The COVID-19 situation has left many Washingtonians without steady pay. If you are a homeowner and have suffered a loss in pay or even a decrease in pay your bank may have a way to help.
Many banks are offering Covid-19 Mortgage relief. This can come in the form of a Forbearance or in Forgiveness.
So what is the difference?
Forbearance Vs. Forgiveness Video
In this video Joe Kiser and Jason Fox discuss the difference between getting forgiveness from your bank or getting a forbearance from your bank.
We understand that neither option is optimal and if you are in this situation where you are having to make these kinds of tough choices, our hearts go out to you.
Before you decide if you want to move forward with getting assistance from your bank make sure that you understand the risks involved. We strongly suggest that you talk to a mortgage professional that you trust before making any decisions. If you do not have one you can borrow ours. David Bryce with Priority home loans.
Other COVID-19 Mortgage Updates
- Loans are still being approved and closed on time
- The interest rates continue to stay in the low 3’s
- Jumbo loans are not currently available
- 0% down state backed loans are not currently available
- Credit score requirements have increased
hi everybody I’m Joe Kiser and I’m
Jason Fox. we just wanted to take a
second to reach out and talk to you
about the differences in what banks are
offering during this time of crisis. there’s a lot of
programs that are either going to be a
forbearance or a forgiveness.
Yeah so a
forbearance is just a delay of payment.
while each bank could be slightly
different what we’ve seen as the general
rule of thumb has been about a
three-month forbearance of payment.
meaning that on the fourth month you
would have a balloon payment, or all four
payments due, which could be kind of
hairy. you come back to work with 4
mortgage payments do verses forgiveness.
where the banks are actually saying okay
what we’ll do is take those three months
and we will put them on the back end. along
with no additional fees. if you get a
forgiveness from your bank that’s really
good if you get a forbearance while it
might be necessary if you
absolutely have to take it. be real
cautious about which one you’re entering
do your research! thanks for
watching any more questions feel free to
give us a call at 206-351-0543
or visit us at www.themadronagroup.com