Frequently Asked Questions
Here is a list of frequently asked questions about forbearance plans and your responsibilities:
Question:
What is a forbearance plan?
Answer:
A forbearance plan allows you to temporarily stop making your monthly mortgage payments during the forbearance period. It is important to understand that forbearance is not forgiveness – it is temporary relief. Any unpaid payments will become due and payable at the end of the forbearance period, and any partial payments made during the forbearance period will reduce the amount you owe when the forbearance period ends.
During the forbearance term, late charges and other fees will be suspended. If your loan is current at the time of entering into a forbearance plan, then each month you are in the forbearance plan we will report the status of the account to the credit reporting agencies as current. If, however, your loan was delinquent prior to entering into a forbearance plan, we will maintain that delinquency status during the period of the forbearance. If you are able to bring the loan current during the forbearance plan, we will report the account as current.
If you are unable to repay all missed payments at the end of the forbearance period, we will need to evaluate a permanent payment solution, such as loan modification, repayment plan or other approved option to bring the loan to a current status and avoid negative credit reporting. We will contact you via email prior to the end of your forbearance with a questionnaire to help determine available options. You will receive additional correspondence reminding you of next steps approximately 6-8 weeks prior to the end of the forbearance period.
Question:
If I don’t request help with my payments now, will assistance be available for me later if I need it?
Answer:
Yes, you can apply for assistance anytime on our website.
Question:
What should I do now that I am on a forbearance plan?
Answer:
It is important that you do the following:
Return any documents that require your signature within 14 days of receipt to ensure your plan does not get cancelled;
Make partial payments, when you are able. It will reduce the total amount you will owe at the end of the forbearance period;
Inform us if your financial circumstances change;
Check your email for updates from us. We will send you periodic email updates to keep you informed about your forbearance plan; and
Register your account online if you haven’t already done so to view your account, forbearance plan details and new information as it becomes available.
Question:
Why aren’t my payments being deferred?
Answer:
We understand that the difference between deferment and forbearance can be confusing. Deferment (or payment deferral) typically means that payments are forgiven or added to the balance of your loan. This option is currently unavailable. However, forbearance plans are available and allow you to temporarily stop making your monthly mortgage payments during the forbearance period. Any unpaid payments will become due and payable at the end of the forbearance period.
Question:
When do I need to contact you about my forbearance plan?
Answer:
You only need to contact us if you wish to cancel your forbearance plan or adjust the duration of the forbearance period. All other questions can be answered by reviewing your account online. We will continue to update the “Frequently Asked Questions” as new information becomes available.
Question:
Will a forbearance plan negatively affect my credit?
Answer:
If your loan is current at the time of entering into a forbearance plan, then each month you are in the forbearance plan we will report the status of the account to the credit reporting agencies as current. If, however, your loan was delinquent prior to entering into a forbearance plan, we will maintain that delinquency status during the period of the forbearance. If you are able to bring the loan current during the forbearance plan, we will report the account as current.
Question:
If I did not make payments before the forbearance plan started, will those payments be reported as late?
Answer:
No new delinquencies will be reported.
Question:
My forbearance doesn’t start until next month, but I have a payment due for this month. What should I do?
Answer:
You don’t need to do anything right now. Even if the letter you received says the forbearance doesn’t begin for another month, no payment is required for this month. However, you have the option to make a full or partial payment, if you are able. Any full or partial payments will reduce the amount owed at the end of the forbearance period.
Question:
Will I be charged any fees while I’m on forbearance?
Answer:
Late fees will not be charged for any payments during your forbearance period. Phone pay fees and other fees will also be suspended.
Question:
I have auto-draft setup on my account. Will monthly payments still be drafted? Should I cancel my auto-draft?
Answer:
We will suspend the auto-draft when we set up your forbearance. Auto-draft must be cancelled 3 days prior to the draft date. If you have payments scheduled prior to the setup of your forbearance, those drafts will need to be cancelled.
Question:
Will I still receive letters about the account delinquency status while the account is in forbearance?
Answer:
Yes, due to investor guidelines we must send certain letters which may include statements regarding the account delinquency. However, you will not be required to make payments during the forbearance period and we will not assess late fees or report the account negatively to credit reporting agencies.
Question:
How long is the forbearance period?
Answer:
The details of your forbearance plan may be viewed online once you log into your account. Depending on the type of loan you have, you may have the option to forbear, or “pause” your mortgage payments for up to 180 days. You may also be eligible to an extension of the initial term. We will contact you via email towards the end of the initial forbearance period with a questionnaire to determine next steps.
Question:
What happens when the forbearance ends?
Answer:
We will send you an email 6-8 weeks before the end of your forbearance plan to let you know what we need from you as you prepare to transition to regular monthly payments. We will include information about options that may be available to you if you are not ready to resume your regular payment schedule.
Question:
What happens to the payments I didn’t make during the forbearance period?
Answer:
All payments will become due at the end of the forbearance period; this includes any payments not made prior to the beginning of your forbearance. If you are able to make partial payments during the forbearance period, it will help reduce the amount due at the end of your forbearance period. If you are unable to pay the full amount to bring your loan current when your forbearance plan ends, we will work with you to determine what options are available to help you get back on track.
Question:
What happens if I am unable to repay all the missed payments when my forbearance plan ends?
Answer:
If you are unable to resolve your outstanding balance when your forbearance plan ends, we will work with you to determine which programs best fit your financial situation at that time. The options we may offer include a loan modification, repayment plan or other options approved by Investor, State and Federal agencies.
Question:
How do repayment plans and loan modifications work?
Answer:
Repayment Plan - A repayment plan allows you to pay the accumulated amount during the forbearance plan you owe over monthly installments which are added to your regular monthly payments until the accumulated amount is paid in full.
Loan Modification - If you are unable to resolve the outstanding amount with a repayment plan, you may be eligible for a loan modification. If you qualify, this option would permanently change the terms of your mortgage to bring you current. It may involve a reduction in the interest rate, an extension of the length of time for repayment, a restructuring of the loan, or any combination of the three. When you are near the end of your forbearance, we will provide more information about these and other options approved by Investor, State and Federal agencies.
Question:
How do I cancel my forbearance plan?
Answer:
Contact us if you wish to cancel your forbearance plan.
Information provided by Lakeview Loan Servicing, LLC subservicing by LoanCare