fbpx
Untitled design (2)

WHAT OPTIONS ARE AVAILABLE AFTER A MORTGAGE FORBEARANCE PLAN?

Homeowners with a resolved hardship related to COVID-19 (including those who are exiting a forbearance plan) have options to bring their loan current. Servicers should discuss options with homeowners and determine eligibility.

Options after a forbearance plan include:

Reinstatement

The homeowner pays back any missed amounts at once if financially able to do so. After the reinstatement, the homeowner continues to pay their mortgage under the original terms of their mortgage loan.
Guidance: Fannie Mae’s Workout Hierarchy

Repayment Plan

Homeowner resumes making their regular monthly payments, plus an additional portion of the missed amount each month, until the missed amount is paid off.
Guidance: Repayment Plan

COVID-19 Payment Deferral

Homeowner resumes making regular monthly payments. This workout solution defers the missed amount along with any servicing advances paid to third parties (e.g., taxes and/or insurance premiums) to the maturity date as a non-interest bearing balance. The deferred amount is due on the maturity date (or earlier whenever the home is sold, or the loan is refinanced or otherwise paid off).
Guidance: COVID-19 Payment Deferral

Fannie Mae Flex Modification

Homeowner has experienced a permanent impact to their ability to pay their regular monthly mortgage payment. After the homeowner completes a trial period plan, all unpaid amounts are added to the unpaid principal balance, and monthly mortgage payments are permanently modified to what may be a lower amount through a rate reduction and a term extension to 40 years (480 payments) from the effective date of the modification.
Guidance: Fannie Mae Flex Modification

Your lender has a lawyer, you should too. We feel that anyone seeking loss mitigation should have an Attorney/Realtor® (without cost). That’s why we formed Lawyers Realty Group.

Share this post

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email

EXCEPTIONAL SERVICE – UNPRECEDENTED PROTECTION

LAWYERS REALTY GROUP is an attorney owned and operated real estate brokerage that was formed to help level the playing field between struggling homeowners and the banks who are threatening them with foreclosure, eviction, deficiency judgments, and collection actions.

Unlike traditional real estate agents, loan mod companies, bankruptcy attorneys, litigators and others who aggressively market their particular one-size-fits-all solution regardless of a homeowner’s future liability and financial well-being, Lawyers Realty Group provides clients with a customized analysis of their options, free legal counseling and clear direction on how to best resolve their particular mortgage issues – all without charging fees to the homeowner.

 

Derik N. Lewis, Esq., is the founder and president of Lawyers Realty Group. Derik is a California real estate attorney, a licensed Realtor® and a member of the National Association of Consumer Bankruptcy Attorneys. He graduated magna cum laude from Boston University School of Law and has nearly 30 years of real estate experience. For more than two decades as an attorney in private practice, Derik has represented California homeowners with difficult real estate matters. Derik previously served as legal counsel for some of the world’s largest lenders including Bank of America, Wells Fargo and JPMorgan Chase (he knows how they operate and how to work within their systems to help you achieve the best possible outcome). He is also a visiting lecturer at the University of Southern California School of Law speaking on real estate law, brokerage and litigation.

Professional Associations

  • Admitted to all State and Federal Courts in California
  • California Bar Association
  • Orange County Bar Association
  • National Association of Consumer Bankruptcy Attorneys
  • National Association of Realtors
  • California Association of Realtors
  • Orange County Association of Realtors
  • California Regional Multiple Listing Service

No Cost Services

Free legal analysis of all of your options, including how to limit or eliminate tax and deficiency liability.

Complete representation for the option that best suits your situation, whether you need assistance in reviewing a loan modification, filing bankruptcy, seeking a deed-in-lieu of foreclosure, pursuing a planned foreclosure or selling in a short sale.

Free Bankruptcy filing in the BK/Short Sale package.

Free legal review and fraud analysis of all solicitations from the bank, real estate agents, lawyers or others.

Free and complete short sale representation including MLS listing, marketing, negotiation, deficiency waivers and closing. You need an Attorney/Realtor® to provide legal leverage and fully protect your interests.

Have Questions?

We are here to answer any questions you have!