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hilo

How will accepting temporary assistance from mortgage company for due to COVID19 affect credit?

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Hi All ,

So my mortgage company is at the bottom of the rung: Newrez. 

They were the last to rollout an email to it's customers with a COVID19 notice. In comparison I received notices well over 2 weeks ago from almost every company I've barely been a customer of from home repair companies, to clothing stores, to juice bars BUT NOT MY MORTGAGE COMPANY. Shame on them!

I saw weeks ago the list of big banks and their notices: BoA, Chase, USAA, etc. But Newrez? pfffffffffft. Didn't even bother until 2 days ago. 😠

 

So , I need assistance like the rest of us in the same boat called Earth. 

What will the credit repercussions be?

How do we take assistance with the least amount of credit damage?

My credit was already illegally damaged in 2008. Resolved only after a class action lawsuit in 2015. I don't want it to happen again if I accept a 'Temporary Hardship' thingy from my pseudo mortgage company, what are your thoughts on the way it will damage credit?

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Your financial survival is more important than your credit scores. Tend to your financial health first and, at least in the long run, FICO will follow.

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Financial survival? or survival?

In the case of 2008 , I did what was being told by the government, financial advisors and lenders and attorney's what was good for my financial survival: qualified for the HAMP. Citimortgage illegally denied me - hence even worse financial hardship. And FICO took way too long to follow until after the lawsuit. 

I'm trying to avoid that by collecting any more information out there, specific advice. 

 

Advice that is helpful is actionable and specific. 

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I'd worry less about credit and more on mere survival. What exactly do you need/want from your servicer? Are you late already? unemployed? Be sure to keep good records of exactly how you are impacted.

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NewRez also has my mortgage although I never reaffirmed it. I didn't get any notice about any sort of program they are offering. 

 

You have to realize that big banks are on the Fed's teet. They can afford to put together programs because they can turn around and get free money to make it work. Independent mortgage investors are not in the same situation. 

 

However if their program is similar to the others, they will suspend credit reporting while on the program. Your biggest worry is that it won't last forever and if you still can't make your payments at that point you will run out of options. 

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16 hours ago, DollarDog said:

Did you file for unemployment?  It may not be much, but hopefully it helps.

I'm self employed - we don't get it. 

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Posted (edited)
16 hours ago, hegemony said:

I'd worry less about credit and more on mere survival. What exactly do you need/want from your servicer? Are you late already? unemployed? Be sure to keep good records of exactly how you are impacted.

I'm not late yet, but all 3 streams of income from very different industries have all shuttered and my income has stopped. I've always had a plan B, C, and D to fall back on but like I said, all are affected. I have records of all:

hospitality

healthcare (non essential)

tech

 

I'm not late yet, but with the shortage of property tax due, and the lack of income coming in the future to cover the higher mortgage payment. I will be.

 

My point of being here, is to ask what the options are now before I'm late. 

I don't know what I need / want from my servicer until I know what options are available and how they will affect me. I've also experienced servicers doing illegal things as I said before and the years of repercussions it caused. 

 

I'm here to do diligence, not state exactly what I want. How would I know that yet?

Edited by hilo

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Reach out and be proactive as you need to with your servicer. If they end up being able/willing to help be content. If not, seek assistance from non-profits and others around you. Until you know exactly what you need, it may be hard for strangers on the internets to know what you need.

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44 minutes ago, hegemony said:

Reach out and be proactive as you need to with your servicer. If they end up being able/willing to help be content. If not, seek assistance from non-profits and others around you. Until you know exactly what you need, it may be hard for strangers on the internets to know what you need.

Thanks @hegemony !

does anyone on the internet even know  the damage or future repercussions of taking the kind of help being offered right now?
How will the bank offering Skipping one payment for this disaster affect credit?
How does forbearance affect credit? 

Maybe someone in the industry knows..
There are things being offered ( not by my mortgage yet ) of skipping a month as in Washington , 

to forbearance to modifications. 

Once again, I was given a 'modification' before and told it would not have any negative repercussions - it did - and yes, I did do my diligence on that one. But it didn't stop the banks from their evil lies until they were sued 5 years later my hundreds of people.  That is why I want to know ALL THE OPTIONS.

Because banks lie!

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You realize all of this COVID-19 financial goodwill by the TBTFs is all window dressing, PR, and keeping the Big G out of their business. Interest is still accumulating, payments are still due, credit reporting is still being done. If you forgo a payment because of COVID-19 you can expect to see a missed payment on your CRAs. The ONLY difference is foreclosures are not being processed during the declared emergency.

 

As Hegemony said - contact your servicer.

 

I just read my notice from Mr Cooper (Nationstar) - two pages of garbledygook. Paraphrased: If you need help call us, but you likely won't get through. Payments are still due, we aren't foreclosing, and we're "in contact with regulators".

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Posted (edited)
1 hour ago, IndyPoolPlayer said:

If you forgo a payment because of COVID-19 you can expect to see a missed payment on your CRAs. 

Now you are confusing what my point was.

 

I'm not talking about blindly foregoing payments.

I specifically said in my title: accepting temporary assistance from mortgage company. 

 

I didn't say anything about foregoing a payment... I was talking about programs put in place  by the banks , like this one from Bank of America's website:

  • Mortgages and home equity: clients can request to defer payments, with payments added to the end of the loan.
  • In all of these instances, there will be no negative credit bureau reporting for up-to-date clients.

reference : https://newsroom.bankofamerica.com/press-releases/consumer-banking/bank-america-announces-additional-support-consumer-and-small

 

 

 

Edited by hilo

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Focus on supporting yourself and/or family. 

 

Hospitality - Probably off the table

Healthcare - Non-essential health care resources are being moved to essential.  Your non-essential healthcare business could now be important.

Tech - This is broad.  Lots of areas in tech that may need help with more people working from home.  Data centers, end user support, etc.

 

Having expertise and established businesses in 3 different industries means you have ingenuity, creativity, and a good work ethic.  We need those skills to help each other right now. 

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5 hours ago, IndyPoolPlayer said:

If you forgo a payment because of COVID-19 you can expect to see a missed payment on your CRAs.

Many banks are offering forbearance without negative credit reporting. But as I said earlier this is entirely dependent on your particular mortgage servicer. Only the big banks are offering deals like that right now. Independent servicers are disinclined to do more than the government requires, so chances are good the OP will not get what he is hoping for. 

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Posted (edited)

 

1 hour ago, shifter said:

Many banks are offering forbearance without negative credit reporting. But as I said earlier this is entirely dependent on your particular mortgage servicer. Only the big banks are offering deals like that right now. Independent servicers are disinclined to do more than the government requires, so chances are good the OP will not get what he is hoping for. 

 

So is a loan guaranteed by Fannie through Newrez some indicator that Newrez is an "Independent Servicer" that would not fall under the government orders?

 

 

"Federal regulators, through the mortgage giants Fannie Mae and Freddie Mac, are ordering lenders to offer homeowners flexibility."

Edited by hilo

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6 hours ago, hilo said:

 

 

So is a loan guaranteed by Fannie through Newrez some indicator that Newrez is an "Independent Servicer" that would not fall under the government orders?

 

 

"Federal regulators, through the mortgage giants Fannie Mae and Freddie Mac, are ordering lenders to offer homeowners flexibility."

If that's the case then call them up and request a forbearance? 

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1 hour ago, hegemony said:

@hilo what did your servicer say when you called?

 

 

I have yet to talk to them, They will only discuss when they call YOU back. I've called over 7 times to be called back. 

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1 hour ago, hilo said:

I have yet to talk to them, They will only discuss when they call YOU back. I've called over 7 times to be called back. 

Be patient. 

 

They're going through the same thing you are.  They have families, mortgages/rent, expenses, job changes. 

 

You're one of thousands in line.

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