If you are a homeowner whose finances have been impacted by the coronavirus, you may be able to benefit from forbearance – a temporary halt to your mortgage payments.
Not sure if this option is for you? Here are four signs that you may want to explore it.
If you are a homeowner and you are experiencing financial hardship due to the novel coronavirus, you have options. As part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, you may be able to take advantage of forbearance, the temporary suspension of your monthly mortgage payment.
If you are afraid to ask your lender to halt your payments, don’t be. Asking for help is nothing to be ashamed of. The option of forbearance is designed to help homeowners make it through this challenging time. Your lender won’t think badly of you. Consider this an opportunity to take a deep breath and get back on your feet.
If you are unsure whether forbearance may be for you, here are some signs that you may want to consider it.
You’ve lost your job. Many companies have announced layoffs in recent weeks. If yours is one of them and you are out of work, the forbearance period can give you time to find a new job without paying your mortgage.
You’ve received a pay cut or had your hours reduced at work. Some companies have managed to avoid layoffs, but they have asked employees to work shorter shifts or take a salary cut, which translates into a smaller paycheck. If you are making less money right now as a result of the coronavirus crisis, forbearance can give you some time to increase your income.
Your business has slowed. If you are self-employed, you may have noticed a downtick in business. If you have lost a client or clients are using your services less, a forbearance can give you time to skip payments while your business recovers.
You think you may lose your job in the near future. Sometimes the writing is on the wall and we know our job is in jeopardy. If your company is struggling because of the coronavirus, you might want to explore forbearance as a way to handle your expenses while you wait to see what happens.
Using the option of forbearance wisely can help you avoid foreclosure and keep one of your most valuable assets for life. Let HomeFree-USA help you determine whether you could benefit from this option.