Good Morning!
When congress passed the Covid-19 help plan one of the things they did was that they eliminated the burden to prove a hardship in order to file a Forbearance on your Mortgage.
Some people that filed for Forbearance were truly in a hardship and needed it. Others weren’t in a hardship, and just wanted to skip some mortgage payments.
I wanted to tell you what you will run into if you are trying to purchase or refinance a house using a new mortgage – if you filed Forbearance.
Fannie and Freddie released a statement on May 19th stating that borrowers are eligible (if they filed Forbearance) if they are current on their mortgage, and they continued to make their payments during the forbearance.
(Which no one will do if they are in Forbearance), or the forbearance is finished and the borrower has made 3 consecutive payments on time.
So, in other words you won’t be able to get a Conventional Mortgage if you filed a Forbearance, unless you continued to make your mortgage payments during this time.
We are still waiting to see how FHA will treat the new Forbearance guidelines.
That’s it for today!
Thanks for reading!
Brett