CARES ACT FOREBEARANCE
WHAT TO DO IF YOU REQUESTED A FOREBEARANCE UNDER THE CARES ACT AND YOU ARE READY TO PAY AGAIN AND WAS CURRENT WHEN FORBEARANCE STARTED.
There are 4 options for FHA mortgages:
First option: To Resume Payments COVID 19 Stand-alone Partial Claim. This option puts the missed payments as a non interest bearing second lien that comes due when the mortgage completes or pays off. No financial documentation is required.
Second option: COVID 19 Owner Occupant Loan Modification. This option rolls the arrears into the note and re-amortizes the mote over a new 360 months. The interest is modified to current HUD rate. No financial documents needed.
Third option: COVID 19 Combination Partial Claim and Loan Modification. Can’t afford the payment on a loan modification and include all of the arrears in the re-amortized loan. Part of the arrears are included in the re-amortized loan balance and part are put in as separate note at the end of the note. No financial information is needed.
Fourth option: COVID 19 FHA Home Affordable Modification Program Combination Loan Modification and Partial Claim with Reduced Documents. There is a target payment 31% of your verified monthly gross (pretax). There is some basic income documentation.
If you were in arrears prior to receiving the deferral you may still be eligible for a HAMP modification but all financial documentation applies.