If you are experiencing a loss of income these days, you’re not alone. Fortunately, mortgage assistance programs are available. The type of program, and the fine print related to it, depends on who holds your mortgage.
Start by contacting your mortgage servicer. This is the company processing your monthly payments. If your financial hardship is caused by COVID-19 related issues, specify this right away. Explain any other hardship issues.
To verify your eligibility for assistance, your mortgage servicer may ask for personal financial info, along with copies of recent bank statements and pay stubs. It’s important that you supply this quickly, and follow up with your servicer frequently. Stay in contact!
If you are approved for assistance, it may fall into one of these categories:
Deferment or Forbearance: under these plans, you can “skip” a number of payments, and/or gradually make up any payments you’ve missed. Sometimes, deferred payments may be tacked on to the end of your mortgage, lengthening the repayment term, but giving you a fresh start.
Modification: under this plan, the interest rate and/or terms of your mortgage may be permanently changed to lower your monthly payment. Any past-due or deferred payments may be “rolled in” to your principal balance. In concept, it’s similar to a refinance.
Your mortgage servicer is your best source of information regarding available programs and their criteria. Please do not hesitate to call them!
We hope these mortgage tips are helpful! When you are ready to buy or sell a home in Northwest Wisconsin, Six Lakes Realty offers the very best in real estate guidance! We are a locally-owned family business with over 40 years of experience. Our friendly, hometown service is just a call away!
Six Lakes Realty
Office: (715) 924-4806