If you’re experiencing financial hardship related to the coronavirus crisis, the idea of forbearance probably sounds pretty good. After all—who wouldn’t want to put off paying their mortgage when money is tight, especially if you’ve just lost your job or are worried you might be about to?!
The problem with forbearance is, in most cases, it only provides a short reprieve from paying your mortgage—as short as three months, depending on the lender. “Under a forbearance agreement, a borrower can pause payments entirely or make reduced payments on their mortgage,” said MarketWatch. “Homeowners with federally-backed mortgages are eligible for up to 180 days of forbearance initially under the CARES Act. At that point, if they’re still facing financial difficulty, they can request an extension of up to another 180 days of forbearance.” (Click here to read.)