Here are just a few of the things I overheard last week:
- "Wells Fargo gave me a 3 month forbearance, I don't need to make any payments."
- "If they can't foreclose, why should I make my mortgage payments?"
- "Mr. Cooper is letting me skip three mortgage payments, I ordered new patio furniture."
How would you respond to each of these? Let's take a look.
1. "Wells Fargo gave me a 3 month forbearance, I don't need to make any payments."
Wells Fargo is granting "Coronavirus Forbearances" to many homeowners. We have not been informed of any borrowers being denied a forbearance from Wells Fargo at this time. As of June 2020, almost all lenders are approving 3-months of forbearance.
In an unsurprising turn of events, Wells Fargo is also giving them to homeowners who don't want them.
The language in Wells Fargo's letter may read one of two ways:
"Prior to the end of the relief period, please contact us to address your situation. We'll work with you or your representative to review the loan status and gather financial information. Then, we'll determine which options may be available to resolve the entire delinquency."
OR
"Any payments that became due during the relief period and are still unpaid will be moved to the end of your loan."
Unfortunately, a client of ours received a follow up letter seven (7) weeks later stating:
"The [prior] letter incorrectly said that any payments that become due during the relief period and are still unpaid will be moved to the end of the loan."
"Prior to the end of the relief period, please contact us to address your situation. We'll work with you or your representative to review the loan status and gather financial information. Then, we'll determine which options may be available to resolve the entire delinquency."
If you received letters like this from Wells Fargo, use this form to let us know. We're investigating whether or not we can force Wells Fargo to honor their initial offer -- moving all 3 payments to the end of your loan.
We don't yet know what options Wells Fargo will offer homeowners, but we are prepared to face them as these issues arise. Some homeowners are trying to reach Wells Fargo now to find out what their options will be, only to be turned away. If Wells Fargo is giving you the runaround, let our firm contact them on your behalf.
2. "If they can't foreclose, why should I make my mortgage payments?"
Many states have enacted Foreclosure moratoriums, but some have only halted evictions. The truth of the matter is that if you're not making your mortgage payment now, you WILL have to make the payments eventually. If your forbearance ends, and you can't afford to make up the skipped payments, you may be forced to apply for a loan modification or even to sell your home.
Amerihope Alliance Legal Services recommends that you keep making your mortgage payments if you can afford to. If you can't, you can use this form to review your situation with us and find out what your options may be.
3. "Mr. Cooper is letting me skip three mortgage payments, I ordered new patio furniture."
Although Mr. Cooper may have granted a 3 month covi19 forbearance, at the end of the three months, you'll have to make arrangements to repay the skipped payments. We predict that part of the application process may look into how you spent your tax return and your stimulus checks. If frivolous spending is detected, your workout solution may not be approved.
We're Ready to Help Homeowners With COVID19 Hardships
The Coronavirus has impacted the American Homeowner in unprecedented ways. The effects will likely be felt for years to come. Amerihope Alliance Legal Services has assisted homeowners after every major financial hardship in the last 12 years, including the Great Recession, and Hurricanes Sandy, Irma & Michael. If you're struggling to pay your mortgage, please seek the advice of an experienced foreclosure defense attorney.
