What If I Can't Pay My Mortgage During COVD-19

What If I Can’t Pay My Mortgage Because of the Coronavirus Lockdown?

The Coronavirus has temporarily altered our lives and for many the uncertainty brings about more panic and worry. And one of those worries might include the ability to make your mortgage payments. There are options if for some reason you are unable to work because of the Stay At Home edict here in Contra Costa County (as well as other counties).

If you are unable to pay your mortgage in the short term, contact your lender immediately as you may qualify for a Forbearance. You don’t want to get so far behind that you become overwhelmed and foreclosure proceedings are underway.

How Will a Forbearance Help Me?

Forbearance is either a temporary suspension or reduction of your mortgage payments for a specific period of time. This is an option if you are either behind on your mortgage payments or on the verge of missing payments due to the fact you are experiencing a temporary hardship.

If you qualify for a Forbearance you and your mortgage company will define the plan which includes the length of time of the forbearance period, what is the reduced payment amount, or if suspended no payments and the terms of the repayment.

Do I Have to Repay Those Missed Payments?

Yes, you do have to repay the amount that was reduced or suspended. There are a couple of options for doing this.

• A repayment plan whereby you can either make a one-time payment to bring the mortgage up to date, or by adding a specific amount each month to your payments until all is paid back.
• Another repayment option is a loan modification. With this option your mortgage company can change the terms of the original loan which will reduce your monthly payments to an amount that is more affordable.

The type of repayment plan will depend on your financial situation at the end of the forbearance period.

By initiating a Forbearance you will be able to stay in your home and avoid foreclosure until you get back on your feet.