Rant How is your Mortgage company handling loan forbearance?

[RamIt]

I am out of work as many here are today because of the covid19 stay at home orders. I am a single dad that has 2 girls that I have to provide for.

I called my mortgage company, Rocket mortgage aka Quicken loans to see if I could put the next 3 months payments at the back end of my loan. They replied they would let me skip the next 3 payments but required me to make a balloon payment in 4 months or they would have to foreclose on my loan. I declined their offer.

"Edit" Please if you are going through this with your mortgage company, post here about your experience. I can't be the only one going through this mess.

I called directly and asked who owns my mortgage and was told it was held by Fannie or Freddie Mac. Hopefully I will be able put the 3 months on the backside of the loan. I will update when I get more information.

Do not agree to a 3 month balloon payment until you have exhaustively checked all of your alternatives.

 

[Fenixgoon]

yeah i've heard a lot of that going around. it's fucking stupid. if someone can't make the next 3 months of payments, HTF are they going to make a significantly larger payment on month 4?

 

[brycejones]

The problem is they need a backstop. The loans are securitiezed and if you don’t pay the company has to make up the difference to the bond holders or else risk defaulting on the bond payments. This is another area the feds can step into to make sure the bond holders are paid and the company remains viable. If that happens then the scenario the OP wants should be possible.

 

[OILFIELDTRASH]

What a help they are.. I heard their ad on the radio about them ready to help. lol
Sorry to hear about your job. Good luck

 

[RamIt]

What a help they are.. I heard their ad on the radio about them ready to help. lol
Sorry to hear about your job. Good luck

That's the reason I'm callin out this company for their b*llshit. They only care about their bottom line.

 

[brycejones]

That's the reason I'm callin out this company for their b*llshit. They only care about their bottom line.

They take your mortgage payment and send it to bond holders who actually own your mortgage. If they default on those payments they will be out of business and thousands more will be unemployed. Push your representative for a solution in the next legislative package related to this shit show.

I truly do hope you and your family come out of this on the other side in good shape. But we need to push for solutions to these issues not just rage.

 

[ivwshane]

OP, who have you voted for in the last several elections (presidential and otherwise)?

I only ask because I need to know whether or not I should care more or less than you do when you vote.

I know that seems rather shallow but a lot of people like to complain about things that they directly or indirectly voted for and things won’t change until they realize their error.

 

[RamIt]

I used to be a registered republican 20 years ago. I have been registered as a independent since. I consider myself as a fiscally conservative, socially liberal kinda guy.

If you are asking about recent presidential elections those were all democratic since Bush2.

 

[ivwshane]

I used to be a registered republican 20 years ago. I have been registered as a independent since. I consider myself as a fiscally conservative, socially liberal kinda guy.

If you are asking about recent presidential elections those were all democratic since Bush2.

Then I wish you well and hopefully the democrats in Congress will be able to enact some sort of backstop like Brycejones was talking about.

Really this sort of thing should have already been done and it should have been coordinated through Congress, the White House, and governors. It doesn’t make sense to have lock downs and not put all financial matters on hold.

 

[Jaskalas]

This nation is run by a clown who bankrupted casinos. Pretty clear he wouldn't know what to do to prevent bankrupting a nation, and all of its people too.

There is potential policy to help people stay in their homes. It remains to be seen whether any Republicans care.

 

[Atreus21]

I am out of work as many here are today because of the covid19 stay at home orders. I am a single dad that has 2 girls that I have to provide for.

I called my mortgage company, Rocket mortgage aka Quicken loans to see if I could put the next 3 months payments at the back end of my loan. They replied they would let me skip the next 3 payments but required me to make a balloon payment in 4 months or they would have to foreclose on my loan.

I'm sorry man that's balls deep. My mortgage company is doing the same except, mercifully, I haven't lost my job yet.

What did you do for a living?

 

[RamIt]

I'm sorry man that's balls deep. My mortgage company is doing the same except, mercifully, I haven't lost my job yet.

What did you do for a living?

I swing a hammer. 54 year old carpenter.
I have work, I just can't go because of my daughters school is closed for the year and the stay at home order.

 

[Atreus21]

I swing a hammer. 54 year old carpenter.

I see. God bless you sir.

 

[skyking]

Then I wish you well and hopefully the democrats in Congress will be able to enact some sort of backstop like Brycejones was talking about.

Really this sort of thing should have already been done and it should have been coordinated through Congress, the White House, and governors. It doesn’t make sense to have lock downs and not put all financial matters on hold.

woulda shoulda. how well did the money get down to the consumers in the 08 bailout? The banks suck at anything that does not help the stockholders. How many foreclosures went through because the banks were in charge?
I'm pissed that congress is once again bailing out businesses and not directly insuring the little guy does not get fucked over. How far will a $1200 check go after a couple of months of no work or pay. Not even going to qualify that with a question mark. Fuck!
Backstopping the loans is not a giveaway.

Shane this is not directed at you, just following on. The fucking woulda shouldas Need to get their asses kicked out.

 

[RamIt]

I see. God bless you sir.

With all due respect, I don't need blessings, I just need the government to step up if they require me to stay at home.

 

[Sheik Yerbouti]

I am out of work as many here are today because of the covid19 stay at home orders. I am a single dad that has 2 girls that I have to provide for.

I called my mortgage company, Rocket mortgage aka Quicken loans to see if I could put the next 3 months payments at the back end of my loan. They replied they would let me skip the next 3 payments but required me to make a balloon payment in 4 months or they would have to foreclose on my loan.

Any chance there's going to be enough public backlash against these companies there will be civic lawsuits filed (I have no idea what they could be charged with)
I'm sorry you're dealing with that. That's 100% bullshit.

 

[Jhhnn]

I swing a hammer. 54 year old carpenter.
I have work, I just can't go because of my daughters school is closed for the year and the stay at home order.

You're stuck unless you're willing to cheat & have someone watch your girls while you work. If you fall 3 months behind you're screwed. OTOH, you can be 2 months behind forever if need be. File for food stamps immediately to stretch out your money & find out if you're eligible for any other benefits.

 

[pauldun170]

Bank of America (You can defer and have it tacked on the end)

In response to COVID-19, Bank of America is offering deferrals on home loans, auto loans, and credit cards

Do you have a home loan, auto loan, or credit card with Bank of America? In response to COVID-19, the bank is offering deferrals for up to 90 days.

www.businessinsider.com

Deferred home loan payments will be tacked onto the end of your loan term
You can apply for deferral on your Bank of America home loan, including mortgages, home equity loans, and home equity lines of credit.

If you defer your Bank of America home loan, interest will continue to accrue. The missed payments are tacked onto the end of your loan term, which means you won't have to pay the total amount after the deferment period ends, but the term of your loan will lengthen.

Chase (Should be similar. Call them up)

Mortgage assistance & help for homeowners | Home Lending | Chase.com

Financial difficulties happen and Chase is here to help. Our mortgage assistance helps homeowners explore their options and stay on track with their payments.

www.chase.com

Others

10 Best Online Banks of April 2024

Forbes' list of the best online banks featuring FDIC insurance, high interest rates, banking apps, low or no fees, and great customer service.

www.forbes.com

 

[BoomerD]

Out of curiosity, I looked. Nothing posted on the website, but some googling says much the same thing as the OP's. Defer 3 months, balloon payment of 4 months after that. I was under the impression was that the law required mortgage lenders (for federally backed mortgages) to allow up to 12 months of forbearance...but you had to ask for it every 6 months.

How to work with your mortgage servicer | Consumer Financial Protection Bureau

Call your mortgage servicer as soon as you know you can’t make your monthly payment.

www.consumerfinance.gov

 

[Wreckem]

Out of curiosity, I looked. Nothing posted on the website, but some googling says much the same thing as the OP's. Defer 3 months, balloon payment of 4 months after that. I was under the impression was that the law required mortgage lenders (for federally backed mortgages) to allow up to 12 months of forbearance...but you had to ask for it every 6 months.

How to work with your mortgage servicer | Consumer Financial Protection Bureau

Call your mortgage servicer as soon as you know you can’t make your monthly payment.

www.consumerfinance.gov

Yes if you have a Fannie, Freddie, VA, or USDA backed loan the second relief package applies and the deferment can be done in multiples including taking on extra payments at the end.

IIRC about 40% of mortgages aren’t held/backed by the govt. That’s a lot of mortgages the second relief package doesn’t apply to.

I’m fortunate that my wife and I are both in education and things would have to truly h the fan for us to be unemployed. I was previously worried about next school year so I looked up who held my loan. Fourtnately whil my servicer is less than idea(Mr Cooper, which is the result of a merger of nationwide and another servicer who went bankrupt because of 2008), Fannie hold the mortgage. I thought that was the case, as when I got my mortgage they were the only company that calculated IBR student loans the way they should be(my actual payment and not 1% of my student loan amount).

 

[BoomerD]

Yes if you have a Fannie, Freddie, VA, or USDA backed loan the second relief package applies and the deferment can be done in multiples including taking on extra payments at the end.

IIRC about 40% of mortgages aren’t held/backed by the govt. That’s a lot of mortgages the second relief package doesn’t apply to.

I’m fortunate that my wife and I are both in education and things would have to truly h the fan for us to be unemployed. I was previously worried about next school year so I looked up who held my loan. Fourtnately whil my servicer is less than idea(Mr Cooper, which is the result of a merger of nationwide and another servicer who went bankrupt because of 2008), Fannie hold the mortgage. I thought that was the case, as when I got my mortgage they were the only company that calculated IBR student loans the way they should be(my actual payment and not 1% of my student loan amount).

We had Mr. Cooper before we refinanced...hard to say who UWM will sell our current mortgage too once the 6 months is up. (my broker said UWM usually holds a mortgage for 6 months then sells it) With the mortgage industry having some problems...this could easily be worse than the 2008 crash...what will happen is unknown.

 

[nickqt]

Who would have thought that societies that refuse to take care of themselves in the best of times completely collapse in the worst of times?

Maybe we just need to cut the highest marginal tax rate for the richest people in the solar system, and make it easier for corporations to pollute our environment. That might work right now.

Vote accordingly.

 

[Thump553]

I am out of work as many here are today because of the covid19 stay at home orders. I am a single dad that has 2 girls that I have to provide for.

I called my mortgage company, Rocket mortgage aka Quicken loans to see if I could put the next 3 months payments at the back end of my loan. They replied they would let me skip the next 3 payments but required me to make a balloon payment in 4 months or they would have to foreclose on my loan.

Stick with it and keep them informed what is going on when that three month deadline approaches-don't just bury your head in the sand. In my experience Quicken has been one of the most reasonable lenders to deal with in that sort of situation.

Remember too that a huge chunk of the homeowners (and renters too for that matter) are in the exact same straits as you, through no fault of their own. I'm guessing some sort of federal remedy (like HARP after the 2008 crash) is inevitable.

 

[Lost_in_the_HTTP]

With all due respect, I don't need blessings, I just need the government to step up if they require me to stay at home.

If you work for a company that was ordered to shut down by the state, I would say your rights violating Governor should pay your mortgage personally.

If you're essentially self-employed, things get a bit muddier. Hopefully a series of lawsuits over the few months after this silliness ends will clarify which rights violating Government entity should be responsible.

That said, I always advocate having a minimum of six months expenses in reserve. That would help you no matter the reason for lack of income.

 

[RamIt]

If you work for a company that was ordered to shut down by the state, I would say your rights violating Governor should pay your mortgage personally.

If you're essentially self-employed, things get a bit muddier. Hopefully a series of lawsuits over the few months after this silliness ends will clarify which rights violating Government entity should be responsible.

That said, I always advocate having a minimum of six months expenses in reserve. That would help you no matter the reason for lack of income.

I am a self employed contractor. I have never made over 50K a year and have to deal with the high cost of living in the SF bay area. It's really hard to save anything on one persons income with 2 kids. It took me till I was 40 years old to afford to put 20% down on my first house.

My goal is to keep 10k in savings but shit happens as most people know.