2,071,606
Let's ignore the first part of your statement (8600 forbearance $645,000,000.00)... neither of those numbers makes a lick of sense.
Six months of payments ($1,250 per month x 6 = $7,500 of payments delayed)... and come the seventh month... all six of those months become due PLUS the seventh month. So really $8,750.00 will be due in October.
The likelihood that the borrower will be capable of coming up with $8,750.00 at that time is slim. Some lenders will allow the $7,500 to be paid out over time (maybe 6 mos. to a year)... So let's think a year. That means in October, they'll owe the $1,250.00 regular payment, plus $625.00 (1/12 of the $7,500 over a year)... for a balance of $1,875/month for the next full year. The likelihood that the borrower will be able to manage that is perhaps better, but still slim.
Of course that doesn't take into account any of the interest that's accruing all along. You're right... it's deep, indeed. He's in it up to his knees, and he's facing head down.
This is what consumers don't understand about forbearance.
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John Juarez
Fremont, CA
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Lynnea Miller
Bend, OR
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Emily Medvec
Santa Fe, NM
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Sarah Hites
Newcastle, OK
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Sam Shueh
San Jose, CA
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Candice A. Donofrio
Fort Mohave, AZ
-
Michael Jacobs
Pasadena, CA
-
Bob "RealMan" Timm
Minot, ND
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Thomas J. Nelson, REAL...
La Jolla, CA
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Bob Crane
Stevens Point, WI
7,864,182
Many home owners face this issue.
Expect a flood of foreclosures next year.
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Steffy Hristova
Tempe, AZ
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John Juarez
Fremont, CA
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Jeff Pearl
Lovettsville, VA
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Kathleen Daniels, Prob...
San Jose, CA
-
Frank Rubi
Metairie, LA
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Bob "RealMan" Timm
Minot, ND
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Bob Crane
Stevens Point, WI
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John Pusa
Glendale, CA
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Michael Jacobs
Pasadena, CA
381,167
Our lender, PNC sent us an email saying it could be added to 12 additional months at end of loan. Interest would be added to principle amount. They also offered to let us pay interest only for 12 months without any additional to principle amount. So it's important to know what the offer is and how it plays out in the end.
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John Juarez
Fremont, CA
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Lynnea Miller
Bend, OR
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Bob Crane
Stevens Point, WI
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Debe Maxwell, CRS
Charlotte, NC
-
Bob "RealMan" Timm
Minot, ND
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Michael Jacobs
Pasadena, CA
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Candice A. Donofrio
Fort Mohave, AZ
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Tammy Lankford,
Eatonton, GA
1,506,163
Easy. Do our part and pay our mortgages.
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John Juarez
Fremont, CA
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Debe Maxwell, CRS
Charlotte, NC
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Kathleen Daniels, Prob...
San Jose, CA
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Frank Rubi
Metairie, LA
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Candice A. Donofrio
Fort Mohave, AZ
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Bob "RealMan" Timm
Minot, ND
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John Pusa
Glendale, CA
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Michael Jacobs
Pasadena, CA
4,582,434
If a freight train is zooming past us at 100 miles per hour and a chicken crosses the road, what's for dinner? And when will be it served? And where? Is it any wonder why the Agent Professor real estate students wonder which type of math is most prevalent in the industry?
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John Juarez
Fremont, CA
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Debe Maxwell, CRS
Charlotte, NC
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Kathleen Daniels, Prob...
San Jose, CA
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Bob "RealMan" Timm
Minot, ND
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Candice A. Donofrio
Fort Mohave, AZ
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John Pusa
Glendale, CA
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Ryan Huggins - Thousan...
Thousand Oaks, CA
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Wanda Kubat-Nerdin - W...
St. George, UT
1,553,599
Based on my experience with The Crash, I make my own economy; I can not control nor concern myself with what others do or do not do. I take responsibility for building my ark so I worry not abnout the weather. I can't control the flood-which may or may not come, I can only be prepared for it.
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Steffy Hristova
Tempe, AZ
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John Juarez
Fremont, CA
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Debe Maxwell, CRS
Charlotte, NC
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John Pusa
Glendale, CA
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Michael Jacobs
Pasadena, CA
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Bob "RealMan" Timm
Minot, ND
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Thomas J. Nelson, REAL...
La Jolla, CA
6,419,449
Unfortunately this will be the start of the next flood of foreclosures in this country, we all need to be ready for this.
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John Juarez
Fremont, CA
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Kathleen Daniels, Prob...
San Jose, CA
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John Pusa
Glendale, CA
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Michael Jacobs
Pasadena, CA
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Bob "RealMan" Timm
Minot, ND
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Bob Crane
Stevens Point, WI
2,784,726
I just had a flashback to my taking the real estate exam days when this question came up, I marked it for a second reading at the end of the test. When several came up, I started to wonder if I would pass? Memory lane
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John Juarez
Fremont, CA
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Debe Maxwell, CRS
Charlotte, NC
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Kathleen Daniels, Prob...
San Jose, CA
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Bob "RealMan" Timm
Minot, ND
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Michael Jacobs
Pasadena, CA
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Bob Crane
Stevens Point, WI
3,139,060
That is unrealistic and could potentially cause short sales or foreclosures to flood the market. Some lenders are offering to tack mortgage payments on the end of the loan...a better scenario in my opinion.
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John Juarez
Fremont, CA
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Emily Medvec
Santa Fe, NM
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Kathleen Daniels, Prob...
San Jose, CA
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Bob "RealMan" Timm
Minot, ND
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Michael Jacobs
Pasadena, CA
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John Pusa
Glendale, CA
3,349,554
I imagine the help will come in the form of short sales. It will be time to roll up the sleeves and get to work.
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John Juarez
Fremont, CA
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John Pusa
Glendale, CA
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Bob "RealMan" Timm
Minot, ND
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Debe Maxwell, CRS
Charlotte, NC
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Michael Jacobs
Pasadena, CA
3,416,038
I am already hearing, seeing and predicting nightmares. If they can not pay the mortgage now, they will no way be likely to come up with 6 months mortgage payments in 6 months. I spoke with one bank on behalf of a client who said on the 5th month, they will look at options if they can not pay. That means the stress will start all over. They will have to refinace, sell or lose home? There is another program that puts the interest at the end of the loan, but you have to ask for it when applying for forebearance. No one tells them that,
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John Juarez
Fremont, CA
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Emily Medvec
Santa Fe, NM
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Bob "RealMan" Timm
Minot, ND
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Debe Maxwell, CRS
Charlotte, NC
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Michael Jacobs
Pasadena, CA
3,383,384
Bone up on your distressed sales skills, that's all we can do. Already working with Short Sales again as of this year.
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John Juarez
Fremont, CA
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Emily Medvec
Santa Fe, NM
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Bob "RealMan" Timm
Minot, ND
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Debe Maxwell, CRS
Charlotte, NC
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Michael Jacobs
Pasadena, CA
3,167,714
why would "we" help these homeowners. I pay the debt I have created. I always have, I always will.
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John Juarez
Fremont, CA
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Debe Maxwell, CRS
Charlotte, NC
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Candice A. Donofrio
Fort Mohave, AZ
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Bob "RealMan" Timm
Minot, ND
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Michael Jacobs
Pasadena, CA
4,177,529
Caroline Gerardo it will difficult to for some borrowers to come up with the forbearance amount.
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John Juarez
Fremont, CA
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Kathleen Daniels, Prob...
San Jose, CA
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Bob "RealMan" Timm
Minot, ND
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Michael Jacobs
Pasadena, CA
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Bob Crane
Stevens Point, WI
766,179
I think they allow it to be paid back over several months.
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John Juarez
Fremont, CA
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Debe Maxwell, CRS
Charlotte, NC
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Bob "RealMan" Timm
Minot, ND
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Michael Jacobs
Pasadena, CA
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Bob Crane
Stevens Point, WI
1,056,663
645 M???
How to help them? I do not know.
Depends on the reason for the loss of income . . .
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John Juarez
Fremont, CA
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Lyn Sims
Schaumburg, IL
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Debe Maxwell, CRS
Charlotte, NC
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Bob "RealMan" Timm
Minot, ND
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Michael Jacobs
Pasadena, CA
902,038
Since when are balloon payments okay? First, those terms need to be clearly explained and second, negotiated in a way that will not cause a foreclosure, say in Octotber, to use your example.
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John Juarez
Fremont, CA
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Kathleen Daniels, Prob...
San Jose, CA
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Bob "RealMan" Timm
Minot, ND
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John Pusa
Glendale, CA
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Michael Jacobs
Pasadena, CA
1,847,051
I don't know if all your numbers are right there but, yes, he is in deep do-do in 6 months for the $7500. Unless, he can take out one of those small business loans or the other loan options based on their unemployment.
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John Juarez
Fremont, CA
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Emily Medvec
Santa Fe, NM
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Debe Maxwell, CRS
Charlotte, NC
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Bob "RealMan" Timm
Minot, ND
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Michael Jacobs
Pasadena, CA
2,400,675
I give up... That's what Mr Cooper will be saying in 6 months Caroline Gerardo
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John Juarez
Fremont, CA
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Debe Maxwell, CRS
Charlotte, NC
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Bob Crane
Stevens Point, WI
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John Pusa
Glendale, CA
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Michael Jacobs
Pasadena, CA
1,241,879
Mr C has sent a lot of orders out asking realtors to assess the home values. However, few homes if any here are under 1.2M. They now ask appraisers to evaluate anything over 1M.
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John Juarez
Fremont, CA
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Bob "RealMan" Timm
Minot, ND
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Debe Maxwell, CRS
Charlotte, NC
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Michael Jacobs
Pasadena, CA
971,083
My thought is we're gonna get busy.
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John Juarez
Fremont, CA
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Bob "RealMan" Timm
Minot, ND
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Debe Maxwell, CRS
Charlotte, NC
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Michael Jacobs
Pasadena, CA
420,003
Please remember MR. C has to front the money for the borrower to the owner of the note. There is no federal bail out for servicers, yet. Servicing is a business that runs on margins. They will foreclose on high risks and now 11 years after the last crash there are more snoop tools to be able to recover. Servicers will offer reasonable terms to borrowers who appear solid. In general taking one of these deals may not be the winning ticket. I suggested to someone offered the deal I mentioned that they would be better off getting a second job for a couple months and let go the cleaning service, turn off HBO package, pack your lunch, and take in grandmother rather than give her money for her apartment.
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Michael Jacobs
Pasadena, CA
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John Juarez
Fremont, CA
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Emily Medvec
Santa Fe, NM
5,254,685
Just FYI, we have a Mr. C loan on one of our rentals. They are offering this to all mortgage holders and in their words, the number of payments that you forego will be added to the end of your loan - same monthly payment for 6 months (if all 6 are used).
What will be due in October is your normal monthly payment.
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John Juarez
Fremont, CA
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Bob "RealMan" Timm
Minot, ND
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Michael Jacobs
Pasadena, CA
556,536
Our president will fix it.
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John Juarez
Fremont, CA
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Bob "RealMan" Timm
Minot, ND
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Michael Jacobs
Pasadena, CA
1,323,529
Forbearance is simply stalling the day of reckoning. There is no plan in place to deal with borrowers' inability to make up the delayed payments.
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Michael Jacobs
Pasadena, CA
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John Pusa
Glendale, CA
716,032
One reason why since the last recession, we have personally been planning for the next and have paid off our mortgage. When you have no debt, this scenario doesn't apply.
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Michael Jacobs
Pasadena, CA
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John Juarez
Fremont, CA
1,206,636
One step at a time is 5e short answer
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Michael Jacobs
Pasadena, CA
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John Juarez
Fremont, CA
183,505
Always know the nuts and bolts of what you are agreeing to and assess the implications. That's why when I used to borrow money I always asked to see the note first. Don't show me the note well in advance, so I can take a few days to consider the offer, then no deal. Same idea applies to forebearance. Thoroughly think it out!
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Michael Jacobs
Pasadena, CA
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John Juarez
Fremont, CA
633,709
Hi Caroline, The GSE backers (Fannie Mae, Freddie Mac, USDA, FHA, VA) are supposed to offer the borrower options at the end of their forbearance period. They can be spreading out the missed payments, refinancing the mortgage to include those payments, added a second note payable at the end, or a lump sum. All of it, I am sure, will require oppressive financial documentation from the borrower. I hope that these entities and other mortgage servicers are in fact required to automatically grant a deferral. It doesn't help the investors, but maybe there will be another bailout, as you mention.