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Are homeowners in forbearance going to have to make a balloon payment?

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If a homeowner had to go into forbearance in the first place because of a cut in pay or they lost their job. How are they going to make a balloon payment if banks aren't going to roll the missed payments to the back of the mortgage? Are banks going to come up with a better option? 

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At some point, the piper is coming due.  Many who are skipping payments under the various 'rona relief programs are also forgetting the interest that continues to pile up on that note...and even if they got in under 3.5%, six months (or more) on a $200K balance (amount pulled at random) is still a chunk to have at the backend given that the principal has not been decreased one iota in that window of time...

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1 hour ago, centex said:

At some point, the piper is coming due.  Many who are skipping payments under the various 'rona relief programs are also forgetting the interest that continues to pile up on that note...and even if they got in under 3.5%, six months (or more) on a $200K balance (amount pulled at random) is still a chunk to have at the backend given that the principal has not been decreased one iota in that window of time...

but the money I would have paid toward my mortgage I invested in a combination of bitcoin, SPCE, and manure futures in my Robinhood account. I'll use my millions in gains to pay of the mortgage.

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15 hours ago, Debtblogger said:

How are they going to make a balloon payment

ACH is pretty popular (either through the servicer's web site, or via a bank's bill pay system), but undoubtedly there will be a few who will still write a check.

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We will just have to wait and see. Hopefully everything gets worked out otherwise we are going into a something that this country has never seen before. Believe that!

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On 7/11/2020 at 7:15 PM, Debtblogger said:

We will just have to wait and see. Hopefully everything gets worked out otherwise we are going into a something that this country has never seen before. Believe that!

Sadly, we DID see some of this with the mortgage industry, and in the not to distant past.  People are going to insist on cramdowns just like 12 years ago.  And unfortunately, banks will cave because they won't want to wait for people with funds to acquire multiple properties to take over the defaulted notes. 

 

The SMART people who are in over their heads would be taking advantage of this time to find properties that they actually CAN afford...

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It depends on the investor. Some want it due as soon as the forbearance is over, others will put it at end of Loan. Either way it does cost the borrower more.

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