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Forbearance During Coronavirus Might Prevent You From Getting a New Mortgage or Refinance Loan

Forbearance During Coronavirus Might Prevent You From Getting a New Mortgage or Refinance Loan

Under the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, homeowners with federally backed mortgage loans who’ve been affected by COVID-19, regardless of delinquency status, can get a forbearance. Also, even if you don’t have a federally backed mortgage loan, your lender might agree to a forbearance plan. Under the CARES Act, any loan that’s in forbearance must be reported as “current” on credit reports, so long as the borrower wasn’t already delinquent on payments at the time of…

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Will the Coronavirus Outbreak Lead to the Next Foreclosure Crisis?

Will the Coronavirus Outbreak Lead to the Next Foreclosure Crisis?

Under the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, homeowners with a federally backed mortgage loan who’re experiencing a financial hardship, which is due directly or indirectly to COVID-19, can get a forbearance—a suspension or reduction in mortgage payments—for up to 360 days, almost a year. Homeowners have been quickly taking advantage of the ability to get this suspension, and forbearance requests grew by 1,896% between March 16 and March 30, 2020. But what happens when those forbearances…

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