Mortgage Payment Deferments due to the Corona Virus can be a Trap for Borrowers
Many borrowers are rushing to request mortgage payment deferments without carefully considering the repercussions. Mortgage deferments due to Covid-19 can be a trap for the unwary borrower. Make sure you fully understand the terms before you agree. Not all deferral agreements are the same. Here are a few examples:
- Six month deferment with the skipped payments added to the back of the loan term
- Six month deferment with the skipped payments spread out over the next year of payments (meaning you pay 1 & 1/2 payments each month for 12 months)
- Six month deferment with the skipped payments due all at once after the deferment period
These deferment options have incredibly different outcomes. Frankly, skipping 6 months of payments, only to have those payments due all at once at the end of the period, is setting up a borrower to default and face foreclosure. Borrowers should discuss in detail with their mortgage company exactly what is expected with the deferred payments.
If you are experiencing financial hardship or struggling with mortgage payments, whether or not it is due to the Corona Virus or the health crisis, call our law firm today. We serve all of Northwest Georgia with offices in Dalton and Calhoun. We specialize in assisting clients with obtaining financial relief, stopping foreclosures, and saving their homes through the bankruptcy court system.
