Now that your forbearance has ended, all payments not made during the forbearance period will have to be paid back. We are here to help you do that!
There are several options that may be available to you to help reinstate your account and pay the payments due:
- Partial claim — If your property is owner-occupied, and you have a specific loan type, you may qualify for a partial claim. This is a solution that brings your mortgage current, prevents foreclosure, and delays repayment of the mortgage payments you missed during your forbearance plan. If your hardship has been resolved and you are able to resume making your mortgage payments following your forbearance plan, a partial claim will be the best option to immediately bring your mortgage current. This gives you the option to have your mortgage insurance company or investor, advance the funds to bring your account current and place a lien against your home for that amount. The insurer or investor secures a partial claim through a 0% interest promissory note. This means that you have no interest payments but must pay off the partial claim when you sell or refinance your home. You can make payments toward a partial claim balance at any time without a prepayment penalty.
- Deferral – Similar to a partial claim, however, this option is only available for limited loan types. A payment deferral brings your mortgage current and delays repayment of certain past-due monthly principal and interest payments, as well as other amounts we paid on your behalf related to the past-due monthly payments. You will be responsible for paying the past-due amounts upon the maturity date of the mortgage or earlier upon the sale or transfer of the property, refinance of the mortgage loan, or payoff of the interest-bearing unpaid principal balance.
- Loan modification— If your hardship has been resolved but you are not able to continue making your mortgage payments following your forbearance plan, you may be eligible for a loan modification that could lower your monthly mortgage payment. The loan modification changes the terms of the loan and targets lowering your monthly mortgage payment by extending the loan term up to 30 years from the date of the modification. This will be more expensive than a partial claim or deferment option because your loan will be extended back to up to 30 years, which will result in additional interest payments for the additional time. The final decision on your reinstatement option is dictated by the loan type you have (investor or insurer) and when your account became delinquent. Each loan type has a “waterfall” of options available, and in order to receive a modification, you must not qualify for the other options that come before modification in the waterfall. To qualify for a HAMP modification on FHA loan, you must submit a full mortgage assistance request form and include the required documentation supporting your hardship and be reviewed as a credit decision. This means reviewing all your outstanding payments reported on your credit report, your hardship, such as unemployment documentation, and other information that applies to your financial circumstances. This process can take up to 30 days once a completed application is received in our office. There are fees associated with a modification that must be paid, including the recording of the new documents. If you have any other liens on your property, you must cooperate with the process of subordinating those liens. In most cases, the FHA loan modification required a partial claim as well.
- Start a repayment plan— Over a set number of months, an extra amount will be added to your regular mortgage payment to cover the amount you owe from the forbearance. This is an easy way to resolve your past-due payments if you don’t have any cash or savings in the bank.
- Pay it as a lump sum— If possible, the simplest option is to pay back the amount owed as a lump sum and pay off the amount you owe at one time.
Please fill out the form below to let us know that your COVID-19-related hardship has ended and you are ready to resume payments. We will then reach out to you with a recommendation and approval for the best option for your reinstatement. If you believe that you need a lower payment to resume making your mortgage payment, most likely, your hardship is not resolved and you may need more time to restore your income to pre-pandemic levels.
At this time, your monthly payment has not changed, so please resume your payments at the amount you were paying previous to the forbearance. All payments are due on the 1st of the month. Please be sure to update your automatic payments yourself. If your loan is being modified, we will communicate any payment change amount to you when your trial plan has ended and the modification is approved.
Ultimately the final decision on the best available option will be set by McCue Mortgage under the programs offered for your loan type.