not paying your mortgage

[LivingAlmostLarge]

Just talking with my mortgage guy to refi and considering moving as well. He said that people are deferring their mortgage payments. Even if they can afford it, they are deferring their mortgage payments because supposedly Congress is talking about forgiving the mortgage payments you don't pay. Have you heard of this forgiving the mortgage the unpaid mortgage payments?

[Jluke]

At one point I heard:

defer 3 months payment and they will move to the end of the payoff schedule.

defer 3 months but then a lump sum is due in the 4th month.

now what you have above.

I continue to pay each month and with a refi in progress I actually paid an additional 4500 to my current mortgage in the hopes that come closing, the settlement company will owe me money rather than me having to wire money to cover the costs.

[Petunia 100]

Just talking with my mortgage guy to refi and considering moving as well. He said that people are deferring their mortgage payments. Even if they can afford it, they are deferring their mortgage payments because supposedly Congress is talking about forgiving the mortgage payments you don't pay. Have you heard of this forgiving the mortgage the unpaid mortgage payments?

No, and I find it highly unlikely.

[disneysteve]

I find it very unlikely that they will forgive everyone's mortgage payments for 3 months, even if you were fully employed and drawing your normal income. Maybe something might be done to help those with hardships but it would be disastrous to just give everyone a free ride for 3 months.

People need to pay their bills if they are able to pay their bills.

[~bs]

The problem with deferring the payment (if you can afford them) is that interest keeps accruing. So while it may be possible that they'll forgive everyone's mortgage payment deferral, it's probably more likely that you'll owe it in some form down the road and be worse off.

[docstudent]

There a tons of people skipping payments as they receive their full pay. At first I thought it was not sensible, but no one knows what will happen in the future. If a person doesn’t have an emergency fund, it might not be the worst idea to defer. I can afford to make my student loan payments, but they were automatically halted by the federal government. In addition, they will credit the missed payments as credit for those in the PSLFP.

Our current system is not operating to assist those in the greatest need. There are multimillionaires receiving government “grants” and some have more than enough personal wealth to sustain their businesses. My family member works for a company that is valued at over 50M and they only have 8 employees and the government is basically subsidizing their payroll...that doesn’t make any sense, right? The average salary of each employee is approximately $51,000.

[Captain Save]

Yes forbearance is a thing .. however it's not recommended unless you have to... especially if you plan on refinancing .. it won't hurt your credit score but it does affect your Ability to repay... why would someone want to take on your loan when you have shown that you are not able to repay... at least not at the moment... they will wait.

[StewartHemmings]

I've heard the same thing. Didn't pay it for the last three months but my wife doesn't believe in the rumors and she said we should speak to a Mortgage Broker Cambridge for details about this. Me neither, to be honest, but what if? So, I'm just waiting for updates, if nothing happens, I will pay it, and that's it. I also say that federal student loan payments and interest, were suspended through September 2020, and that's why I thought there might be exemptions for the mortgage as well. Well, now that Biden won, might there be any changes or just words in vain? What do you think?

[Like2Plan]

I didn't notice this thread when it was first posted. Anyway, I googled the topic and found some links.
I don't see anything about mortgage forgiveness, just forbearance.

Firstly, this only applies to certain loans: A federal law put in place two protections for homeowners with federally or Government Sponsored Enterprise (GSE) backed mortgages (FHA, VA, USDA, Fannie Mae, Freddie Mac). Also, you have to apply for it.
Learn more about these options and if they're right for your situation:
link to Learn about mortgage relief options and protections

https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/mortgage-relief/

What to do after forbearance

https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/after-you-receive-relief/

Coronavirus Aid, Relief, and Economic Security (CARES) Act
https://www.investopedia.com/coronav...20six%20months.


How to Get a COVID-19 Mortgage Forbearance Extension

https://www.investopedia.com/how-to-get-a-covid-19-mortgage-forbearance-extension-5079423

This article tells: What Happens When COVID Forbearance Ends

http://www.freddiemac.com/blog/homeownership/20200629_understanding_covid-19_forbearance_part_II.page

Here is a quote from the freddiemac article:

"What happens when my forbearance period ends?
About 30 days before the initial forbearance plan is scheduled to end, you and your servicer will assess your situation and determine next steps. This could include additional forbearance or a workout option to make up your missed payments. Under the CARES Act, you are eligible for forbearance for up to 12 months.

Mortgage forbearance is not the same as mortgage forgiveness. At the end of your forbearance period, you must pay the delinquent payments and you’ll work with your servicer to determine the best solution for making them up. There are multiple options for catching up with your missed payments, so it’s important you ask questions to determine the best option for your situation. You are never required to pay back missed payments in a lump sum if your loan is owned by Freddie Mac.

How does COVID-19 forbearance repayment work?
While you must pay back payments that were missed during forbearance you will not accrue additional fees, penalties, or interest beyond the amounts already scheduled or calculated based on the terms of your mortgage.

For example, let’s say you enter into a forbearance agreement of three months. If your monthly mortgage payment is $1,000, you will owe about $3,000 in missed payments at the end of a three-month forbearance period. Again, you don’t have to pay it back all at once and your servicer can help you determine the work out option that works best for you, including:

• Reinstatement
• Repayment plan
• Payment deferral
• Loan modification

To stay on track with paying down your loan balance and less interest over the life of the loan, it’s important that you resume your payments as soon as you are financially able. During your COVID-19 forbearance period, there is no “extra” interest that you are being charged, but you won’t be paying down your principal and the interest will continue to accrue on your unpaid mortgage balance. As your amortization schedule shows you, with each monthly payment you are paying a little more principal and a little less interest – reducing the total amount you owe on the loan over time."

[bjl584]

I haven't heard this.
As someone else mentioned I did see a lot of banks allowing you to skip X number of payments without penalty and just moving the payments to the end of the loan

[amarowsky]

I'd be careful..... Mind your fine print. While I don't know the details of my friend's case, he was in a similar situation back in 2010 ish melt down timing. He wanted to refi because payments were high and his life situation changed, and they advised him to defer 3 months payments as well. (My friend was younger, and not that financially informed) as pre-caution, but according to him, he got screwed around. And wound up having to add on a few hundred $$ for the next year or two to make up those payments.

Exemption from you situation possibly: my friend was not well w/ $$, not as informed, 9 ish years ago w/ different rules/programs, and of course , the story was given to me through his bias lens.

I merely shared this, so incase you choose to proceed, do so w/ some trepidation and skepticism.