Author Topic: Residential Mortgages  (Read 8630 times)

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Residential Mortgages
« on: April 13, 2020, 11:55:44 PM »
Hoping you guys can help me out here.

The Federal Gov announced forbearances on Freddie Mac and Fannie Mae mortgages in the Cares Act and before that. 180 days to start plus 180 day extension (total of one year).

I just had someone with multiple residential properties check his mortgages on https://www.makinghomeaffordable.gov/get-answers/Pages/get-answers-find-out-mortgage.aspx, and all came back as owned by either Fannie Mae or Freddie Mac. Are all residential mortgages owned (backed?) by them?

If so, why hasn't this been billed as One Year National Mortgage Relief for All Homeowners? What am I missing?🤔
I've only seen this mentioned as a by the way kind of thing with many complaining about lack of mortgage relief (I understand this doesn't extend to commercial but still)

Offline hvaces42

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Re: Residential Mortgages
« Reply #1 on: April 14, 2020, 12:00:13 AM »
There's a voice note circulating about one-year forbearance. The danger of this is the hit that your credit will take with a reported forbearance and also the lump sum provisions of some of these forebearances. I cant speak to Fannie or Freddie. But before you do this make sure you read the fine print.
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Re: Residential Mortgages
« Reply #2 on: April 14, 2020, 12:02:11 AM »
There's a voice note circulating about one-year forbearance. The danger of this is the hit that your credit will take with a reported forbearance and also the lump sum provisions of some of these forebearances. I cant speak to Fannie or Freddie. But before you do this make sure you read the fine print.
Part of the Cares Act is that forbearances granted cannot result in negative reporting

Offline hvaces42

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Re: Residential Mortgages
« Reply #3 on: April 14, 2020, 12:19:43 AM »
Part of the Cares Act is that forbearances granted cannot result in negative reporting
Only saw that on student loans.
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Offline hvaces42

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Re: Residential Mortgages
« Reply #5 on: April 14, 2020, 12:32:13 AM »
https://www.nolo.com/legal-encyclopedia/credit-protections-under-the-coronavirus-cares-act.html
Does not say that they cant report it in forbearance as the status. They cant say youre delinquent.
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Re: Residential Mortgages
« Reply #6 on: April 14, 2020, 12:35:43 AM »
Does not say that they cant report it in forbearance as the status. They cant say youre delinquent.

must report your account as current to the credit reporting agencies, so long as you weren't already delinquent on payments...
...Specifically, the creditor canít report your payment as delinquent if you're up to date on the debt and the creditor agrees to:
...
forbear any delinquent amounts


How do you read this? Says they must report as current. Doesn't say they can report as anything else.

Offline hvaces42

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Re: Residential Mortgages
« Reply #7 on: April 14, 2020, 12:49:18 AM »
must report your account as current to the credit reporting agencies, so long as you weren't already delinquent on payments...
...Specifically, the creditor canít report your payment as delinquent if you're up to date on the debt and the creditor agrees to:
...
forbear any delinquent amounts


How do you read this? Says they must report as current. Doesn't say they can report as anything else.
Current on the payment but in forebearance
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Re: Residential Mortgages
« Reply #8 on: April 14, 2020, 12:51:41 AM »
Current on the payment but in forebearance
You think that would have a negative impact?

Offline hvaces42

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Re: Residential Mortgages
« Reply #9 on: April 14, 2020, 12:57:09 AM »
You think that would have a negative impact?
Banks and mortgages...dont really have a great track record. See E.G.2008 forebearances
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Offline Shua

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Re: Residential Mortgages
« Reply #10 on: April 14, 2020, 08:21:05 AM »
According to my lender, no negative reporting and if your loan is current will be reported as current. See attached.

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Re: Residential Mortgages
« Reply #11 on: April 14, 2020, 09:14:00 AM »
As far I've heard the reporting depends on the lender.

Offline hvaces42

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Re: Residential Mortgages
« Reply #12 on: April 14, 2020, 09:24:44 AM »
As far I've heard the reporting depends on the lender.
As does the forbearance. Its only for federally insured or backed loans.
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Re: Residential Mortgages
« Reply #13 on: April 14, 2020, 09:57:01 AM »
As does the forbearance. Its only for federally insured or backed loans.
So back to my question- aren't all residential mortgages federally insured? That would mean the forbearance extends to all homeowners (some commercial as well), and you'd just have to ensure beforehand that they won't report negatively.

Offline ExGingi

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Re: Residential Mortgages
« Reply #14 on: April 14, 2020, 10:40:39 AM »
So back to my question- aren't all residential mortgages federally insured?
No!
I've been waiting over 5 years with bated breath for someone to say that!
-- Dan

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Re: Residential Mortgages
« Reply #15 on: April 14, 2020, 10:46:46 AM »
No!
Just did some research.
Fannie Mae and Freddie Mac buy about 66% of U.S. mortgages.

Now, if I were to do a write up that "65% of homeowners are eligible for up to a year of mortgage forbearance" how would you guys attack me? (Constructive criticism of course...)

Offline hvaces42

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Re: Residential Mortgages
« Reply #16 on: April 14, 2020, 12:10:37 PM »
And now the competing voice note from Ari Brody of Cross country Mortgage saying not to do this unless absolutely necessary basically sayinh dont trust the banks because of 2008.
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Re: Residential Mortgages
« Reply #17 on: April 14, 2020, 03:22:13 PM »
And now the competing voice note from Ari Brody of Cross country Mortgage saying not to do this unless absolutely necessary basically sayinh dont trust the banks because of 2008.
'08 prior to Fed scooping up mortgages? Or post?

Offline joeb1

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Re: Residential Mortgages
« Reply #18 on: April 14, 2020, 03:30:51 PM »
all mortgage brokers are staying stay away like fire unless absolutely necessary

Offline hvaces42

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Re: Residential Mortgages
« Reply #19 on: April 14, 2020, 03:51:28 PM »
'08 prior to Fed scooping up mortgages? Or post?
Post. Almost Every bank that promised modifications after forbearance lied outright. Paging @ExGingi back me up my friend. I believe we will see many times more foreclosures than post-2008 after the moratorium is over.  And the banks have gotten much smarter. No more "free houses" due to technicalities.   
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