So my office had a virtual meeting a little bit ago on this topic. First off, I’m not a financial advisor or a loan officer, so I’m going by information provided to me that I am passing along to you.
With that said, if your home loan is backed by Freddie Mac or Fannie Mae, you can contact your lender and ask for help (please see related article). They can’t coach you into what to say, and they need to hear you say it (with paperwork coming later). But when you call, the two magic words are: Coronavirus and Forbearance. I’d even add COVID-19 into your conversation to be sure. So perhaps say something like,
“I’m calling because due to the Coronavirus crisis, specifically COVID-19, my financial situation has instantly, drastically changed, and I need to ask for forbearance.”
From what I’ve been told, be prepared to sit on the phone an hour or two – maybe even more. If you believe that is worth your time, to have that much more money available to you during this crisis, then you can certainly make that call.
What does forbearance do? From what I’ve been told, it pushes off the loan – kind of like kicking a can down the street a bit. You still have to pay the loan, of course, but just a little later when things are better. And, forbearance doesn’t ding your credit, but it does show up on a credit report (I’ve seen this myself when presenting rental applications to my landlord clients).
Good luck to you. If you have any questions or concerns, please feel free to reach out. I always have time for you and your referrals!
Lori Dake, an IL licensed broker
www.LoriDake.com <— Visit my site for lots of great info!
P: (773) 697-4474
F: (773) 717-5500
E: LDake@KaleRealty.com
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Kale Realty
2447 N. Ashland Ave., Chicago, IL 60614
www.KaleRealty.com
(312) 939-5253