Many people around Colorado have temporarily stopped their mortgage payments with a mortgage forbearance. What many people don’t know is that when their mortgage forbearance ends they may owe all of their delayed payments at that time.
Bankruptcy and debt resolution attorney Liz German wants to make people aware of this lump sum payment possibility. Liz will explain how you can find out whether you’ll owe these payments.
Are You Financially Struggling?
It can be hard to accept you need help, but our non-judgmental and compassionate attorneys know that the sooner financial issues are addressed, the sooner you can be on the road to financial recovery.
When Your Mortgage Forbearance Ends…
So a lot of you may have gotten information that your mortgage lender will forbear, or defer, your payments between three to six months because of the coronavirus.
One thing you wanna make sure is, that if you’re taking advantage of this program, that you understand what the terms of the repayment are for those deferred payments once that mortgage forbearance ends.
One Massive Repayment
Some of my clients have run into the problem where at the end of the three to six month forbearance, they are actually going to be required to pay, in a lump sum, all the payments that have accrued.
How to Avoid a Lump Sum Bill
In order to get them pushed to the end of the loan, what you have to ask for is a loan modification.
Consequences of a Lump Sum Payment
If your original term of the forbearance does not automatically push those payments to the end of the loan, you could end up facing a foreclosure or a situation where you cannot come up with all of those funds at once.
You Have Options
If you have that issue, we can discuss your payment options.
You may be able to negotiate with the lender, or you may be able to look at a chapter 13 bankruptcy to catch you up on those payments you may have missed.
We offer a half-hour free case assessment to discuss these options, and anything else relating to debt or questions you may have. You can give us a call to schedule that at 303-688-0944, or you can visit us online.