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

[Debtblogger]

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? 

[MarvBear]

Welcome to Creditboards!

We hope that you find what you're looking for here.

Some helpful tips:

• Your post may not get a reply right away. Don't be discouraged, this is a very busy board. If it falls off of the first page, feel free to reply to your post yourself, with the word *bump* in the text. This will *bump* your post back up to the top of the board.
• If you haven't yet, take a peek at out Newbies Section. Everything that you need to know is in that forum, for the most part. It's a lot of reading, we know, but this credit stuff can have a steep learning curve. In no time, you'll be posting like the pros!
• If you find that someone is discourteous to you, use the REPORT button at the top right of every post - that will ensure that a moderator or admin looks at the post and decides if it is against the TOS.
• Off -topic posts should go in the General Forum.

 

Again, welcome to the CreditBoards family!

 CB Admin:  Pam, MarvBear, radi8, LKH & 😇breeze😇

 

[cv91915]

https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/after-you-receive-relief/ 

[centex]

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...

[hegemony]

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.

[cv91915]

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.

[Debtblogger]

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!

[centex]

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...

[tiggerlgh]

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.

[CreditCurious20]

You will either need to make a balloon payment or modify the mortgage to add payments to the end of the note. Whether loan modification is an option is dependent on your lender and loan program, etc.