Residential Mortgages

[Yef]

If bank offers to add the 3 months to after 30 yr term is up what is there to worry about?

[hvaces42]

If bank offers to add the 3 months to after 30 yr term is up what is there to worry about?

Get it in writing and make sure that they dont report you delinquent on a rolling basis.

[Shua]

Just spoke to my mortgage broker. She said that yesterday she was advising people that there was no problem with forbearance.

She ran a clients credit who went on forbearance (which she said she didn't know that the client went on it) and his credit score went from 750 to 620 with a clear notation that the account is in forbearance. See attached

[zale]

Is the three month deferral that banks are offering the same as forbearance?

[AsherO]

Just spoke to my mortgage broker. She said that yesterday she was advising people that there was no problem with forbearance.

She ran a clients credit who went on forbearance (which she said she didn't know that the client went on it) and his credit score went from 750 to 620 with a clear notation that the account is in forbearance. See attached

That’s one way to deter people, though I think it was claimed elsewhere on DDF that the government isn’t allowing it to be reported (with a counter argument that they have to report is as current but can note it’s in forbearance).

[hvaces42]

That’s one way to deter people, though I think it was claimed elsewhere on DDF that the government isn’t allowing it to be reported (with a counter argument that they have to report is as current but can note it’s in forbearance).

It should say "current" instead of "30 day late". Good luck getting this fixed if it was actually current. The forbearance note is not in the lateness area.   

[ExGingi]

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.

I can't talk about post forbearance modifications, but I can say that Freddie and Fannie mortgages were almost guaranteed a modification if numbers worked out. Anything else depended on the owner of the note. Chase gave very favorable modifications (similar to Freddie and Fannie with an added benefit of forbearance forgiven if payments made on time for 3 years), HSBC mostly wouldn't budge, nor would Amalgamated. This is based on personal experience helping friends get modifications.

[YitzyS]

Got this email from my mortgage broker:

I hope this email finds you in good health.

A little while ago, I reached out to let you know that the banks have no clue what they are doing in regards to deferring a loan payment, and that doing so may have a negative impact on your credit.

Well, a client of mine just confirmed this with me. She decided to take a chance and deferred only one payment & the loan servicer put her account into forbearance, causing a negative mark on her report and lowering her score by 88 points! This is what her credit report now shows:

She has now paid up her missing payment, and is fighting to get this mark removed.

The last thing I want is for you to be in the same mess, so please do not defer even a single payment unless you have absolutely no other option. And if you do, it is of utmost importance that your loan servicer sends you any promises they make in writing, not just over the phone.

As always, please feel free to reach out if I can be of assistance in any way.

Warm regards,


Attached to the email was the picture from this post:

Just spoke to my mortgage broker. She said that yesterday she was advising people that there was no problem with forbearance.

She ran a clients credit who went on forbearance (which she said she didn't know that the client went on it) and his credit score went from 750 to 620 with a clear notation that the account is in forbearance. See attached

[AsherO]

They’re all circulating the same picture and message to discourage you from doing something that’s detrimental to the banks they work with. Everyone getting a 12 month forbearance is bad for their business so they’re discouraging it.

[joeberg]

Got this email from my mortgage broker:

I hope this email finds you in good health.

A little while ago, I reached out to let you know that the banks have no clue what they are doing in regards to deferring a loan payment, and that doing so may have a negative impact on your credit.

Well, a client of mine just confirmed this with me. She decided to take a chance and deferred only one payment & the loan servicer put her account into forbearance, causing a negative mark on her report and lowering her score by 88 points! This is what her credit report now shows:

She has now paid up her missing payment, and is fighting to get this mark removed.

The last thing I want is for you to be in the same mess, so please do not defer even a single payment unless you have absolutely no other option. And if you do, it is of utmost importance that your loan servicer sends you any promises they make in writing, not just over the phone.

As always, please feel free to reach out if I can be of assistance in any way.

Warm regards,


Attached to the email was the picture from this post:

Which broker, Reichenberg?

[hvaces42]

They’re all circulating the same picture and message to discourage you from doing something that’s detrimental to the banks they work with. Everyone getting a 12 month forbearance is bad for their business so they’re discouraging it.

Not mutually exclusive. I'd quicker believe that the story is true than the brokers are protecting the banks.

[YitzyS]

Which broker, Reichenberg?

Jack Buchler of MR Capital Group

[zagguru]

Is this also applying to the 3 month deferment that banks are offering for COVID? Or is just for 12 month forbearance?

[ari3]

https://www.forbes.com/sites/ryanguina/2020/04/18/proposed-2000-monthly-stimulus-checks-and-canceled-rent-and-mortgage-payments-for-1-year/#42ee405c2b48

[zagguru]

Got this email from my mortgage broker:

I hope this email finds you in good health.

A little while ago, I reached out to let you know that the banks have no clue what they are doing in regards to deferring a loan payment, and that doing so may have a negative impact on your credit.

Well, a client of mine just confirmed this with me. She decided to take a chance and deferred only one payment & the loan servicer put her account into forbearance, causing a negative mark on her report and lowering her score by 88 points! This is what her credit report now shows:

She has now paid up her missing payment, and is fighting to get this mark removed.

The last thing I want is for you to be in the same mess, so please do not defer even a single payment unless you have absolutely no other option. And if you do, it is of utmost importance that your loan servicer sends you any promises they make in writing, not just over the phone.

As always, please feel free to reach out if I can be of assistance in any way.

Warm regards,


Attached to the email was the picture from this post:

I dont see how this can be true if the disclosure for 3 month deferment for COVID clearly says no negative reporting to credit bureau

[joeberg]

Jack Buchler of MR Capital Group

Seems like all the MR people are sending it out as a personal email.

[AsherO]

https://www.forbes.com/sites/ryanguina/2020/04/18/proposed-2000-monthly-stimulus-checks-and-canceled-rent-and-mortgage-payments-for-1-year/#42ee405c2b48

Considering how long it took to get CARES passed (when things looked worse than they look now IMHO), COVID-19 will be long gone before this passes...

Also, both these proposals in their current form sound to simple, CARES act only passed because of all the various aspects of it and how they each cater to different agendas.

[Mordyk]

They’re all circulating the same picture and message to discourage you from doing something that’s detrimental to the banks they work with. Everyone getting a 12 month forbearance is bad for their business so they’re discouraging it.

Why is it bad for their business?   No refi?

[AsherO]

Why is it bad for their business?   No refi?

It’ll put a strain on the banks which could cause the banks to tighten the $pigot.

[momo]

I have a boa loan, placed it on hold 2 weeks ago for 3 months. So far no negative report on my credit score.