mortgage woes
Dern mortgage company!
Finally heard back from their "workout department" today. I had applied for a "special forbearance" in anticipation of Jon's surgery and him getting laid off. This way we could skip a couple of payments and not have to worry about the mortgage company going crazy on us. Well, it turns out that the forbearance is not going to be much help. They will only do it for 1-3 months, and once that time is over, all of the payments that were missed become due, along with late fees, etc. So if we were to accept that plan, then lets say in 2 months I would have $4600 due on my account. That would almost leave us in a worse position than we're in now. They also offer a differment plan, but that only lasts 3 months and at the end of those 3 months they take the missed payments and apply them to your current payment for up to 12 months. So our payment would jump from $2300 to possibly $2800/month. Again, leaving us in a worse position than we're in now.
After he explained the programs, he said that we actually don't qualify because we're current on the mortgage. I have to be 2-3 payments behind before we'll qualify. I hate being behind on bills, and we're finally getting our credit on track. I was trying to head the problem off at the pass, and not get behind, but they'd rather have me behind then being proactive with the situation. grrr.
He said not to worry tho, if we skip a month or 2, it'll be ok. They don't start the foreclosure process until 3-4 months, and they're typically taking 5-6 months to actually process them. The final plan he offered was a rate modification plan, where they get you into a lower fixed rate for a set number of years (he said typically 3-5). Then during that time you can work on getting it refinanced into a 30 year fixed. The only catch, Jon has to have full-time employment to qualify. So once he's able to get a job, I'm going to give them a call back.
We're getting enough back in taxes this year that it's going to cover Jon's normal salary for the month. So this month I'm going to pay the mortgage, and most likely skip next month. Of course, I'm hoping that Jon might be able to get a job before then. :) *crosses fingers*
Finally heard back from their "workout department" today. I had applied for a "special forbearance" in anticipation of Jon's surgery and him getting laid off. This way we could skip a couple of payments and not have to worry about the mortgage company going crazy on us. Well, it turns out that the forbearance is not going to be much help. They will only do it for 1-3 months, and once that time is over, all of the payments that were missed become due, along with late fees, etc. So if we were to accept that plan, then lets say in 2 months I would have $4600 due on my account. That would almost leave us in a worse position than we're in now. They also offer a differment plan, but that only lasts 3 months and at the end of those 3 months they take the missed payments and apply them to your current payment for up to 12 months. So our payment would jump from $2300 to possibly $2800/month. Again, leaving us in a worse position than we're in now.
After he explained the programs, he said that we actually don't qualify because we're current on the mortgage. I have to be 2-3 payments behind before we'll qualify. I hate being behind on bills, and we're finally getting our credit on track. I was trying to head the problem off at the pass, and not get behind, but they'd rather have me behind then being proactive with the situation. grrr.
He said not to worry tho, if we skip a month or 2, it'll be ok. They don't start the foreclosure process until 3-4 months, and they're typically taking 5-6 months to actually process them. The final plan he offered was a rate modification plan, where they get you into a lower fixed rate for a set number of years (he said typically 3-5). Then during that time you can work on getting it refinanced into a 30 year fixed. The only catch, Jon has to have full-time employment to qualify. So once he's able to get a job, I'm going to give them a call back.
We're getting enough back in taxes this year that it's going to cover Jon's normal salary for the month. So this month I'm going to pay the mortgage, and most likely skip next month. Of course, I'm hoping that Jon might be able to get a job before then. :) *crosses fingers*