Mortgage Forbearance Plans: Be Aware of the Small Print

South San Francisco, CA   April 15, 2020 by SSF Resident, Nicole Loza, Law offices of Tom Ratanavaraha

At this time the banks are offering forbearance plans if people can’t pay their mortgage. What these plans basically say is that for the next 3-6 months you don’t have to pay your mortgage and you won’t have to pay interest or penalties.

Although this sounds like a great solution right now, when the plan is over the homeowners will have to pay everything that is owed all at once. If people can’t afford to pay their mortgages right now, there’s no way they have enough saved, or will be able to earn enough once back at work, to make that lump sum payment.

What I expect to see the banks do when this is all over, is offer people who took forbearance plans repayment plans, which will consist of people having all of their arrears spread out over a 6-12 month period, and that amount will be put on top of their monthly mortgage payments. I suspect that most people won’t be able to afford that either.

If you have concerns, please feel free to reach out to me, and let’s see what we can do. You can reach me by email, or by phone 650-340-0204

Our office is located at 851 N. San Mateo Drive STE B  San Mateo ca 94401
About Nicole Loza
Im a South City Native
I’ve been in the Real Estate and mortgage industry since 2003
In 2005 I graduated from SF State with a degree in Holistic Health but decided to stay in RE
When the market crashed in 2008 I really found my passion advocating for homeowners. I teamed up with  Attorney Tom Ratanavaraha and have assisted over 3000 bay area families save their homes from foreclosure. I love educating, helping clients stay on track then showing them how to protect their assets by setting up an Estate Plan

BRE# 01774289

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