Bank of America, Chase Bank, Ally Bank, Wells Fargo, and other mortgage lenders are falling in line - to allow deferment of monthly mortgage payments for 90 or 120 days. This is in response to the huge impact Covid-19 is having and will continue to have on everyone with mortgages in the United States.
See my previous related article at CORONA VIRUS - SUSPENSION OF FORECLOSURES
The concept appears well thought out - the deferred payments get added on to the end of the mortgage (ie: added to the remaining principal) That means you will be paying interest on the full amount of unpaid principal, including the additional amount being added on. Deferring payments they say will not be reported as a default and won't be reported against a credit report. Late fees will be waived.
Full details of these programs have not yet been completely released, but the lender understand that a huge swath of employees and small business owners are going to be unable to make the next few months mortgage payments, primarily because of catastrophic business downturn or unemployment. Foreclosures and evictions are also being delayed temporarily.
We will keep you abreast of the latest developments on this important front as they develop.
Copyright 2020 Richard P. Zaretsky
Be sure to contact your own attorney for your state laws, and always consult your own attorney on any legal decision you need to make. This article is for information purposes and is not specific advice to any one reader.
Richard Zaretsky, Esq., ZARETSKY LAW GROUP. ATTORNEYS AT LAW, 1615 FORUM PLACE, WEST PALM BEACH, FLORIDA 33401, PHONE 561 689 6660. RPZ@ZARETSKYLAW.COM - FLORIDA BAR BOARD CERTIFIED IN REAL ESTATE LAW - We assist Brokers and Sellers with Short Sales and Modifications and Consult with Brokers and Sellers Nationwide www.ZARETSKYLAW.com.