Forbearance for unemployed borrowers?
If you are , or know anyone who has a Fannie Mae/ Freddie Mac serviced mortgage and are unemployed, there may be some good news out there.
Statistics show 10% of delinquent FNMA/FHLMC serviced loans are tied to a borrower being unemployed. As a result;
- Mortgage servicers can approved unemployed borrowers up to 6 months forbearance.
- It can be extended an extra 6 months with prior approval (total of 12 month forbearance possible).
- Those in existing forbearance plan can be evaluated for qualification under this new plan.
Of course it will be up to the servicer to allow this. GMAC has said they are participating, while Bank of America and Wells Fargo have said they are reviewing and assessing this plan.
And furthermore, under this plan, the servicer is not allowed to accrue late charges or report you late to the credit bureaus.
Before agreeing to the plan offered by your servicer, make sure to confirm how it will be reported to the credit bureaus. Because if they report “modification” or “forbearance” it could be perceived as derogatory to your credit and drop your score.
Contact your servicer to determine if you are eligible.
Ray Williams, Branch Manager, Summit Home Mortgage Denver
firstname.lastname@example.org 303.779.0591 x101