There are almost 90,000 mortgaged properties in the Tri-Cities counties of Sullivan, Washington, Carter, Greene, Hawkins, Johnson, Unicoi and Washington Co. Va. Of those 15,082 (16.8%) are underwater – the loan has a higher principal than the free-market value. The largest number is in Sullivan Co where almost one-in-five mortgaged properties have this troublesome economic status.
More homeowners are in search of mortgage relief due to the COVID-19 pandemic, and options like mortgage deferment and mortgage forbearance are becoming readily available to those in need. But “we are seeing the terms being used interchangeably,” Sara Singhas, director of loan administration for the Mortgage Bankers Association, told realtor.com®.
Mortgage deferment and mortgage forbearance allow borrowers to temporarily stop making their monthly payments, but they differ in what happens afterward. At the end of a forbearance period, the amount of payments missed are due in a lump sum. However, lenders may choose to work with borrowers to structure a payment plan.
On the other hand, deferment is allowing borrowers to repay the money over time or add it to the end of their loan period. “Technically, a mortgage forbearance agreement is when you’ve possibly been late, and the lender agrees not to foreclosure during that forbearance period,” Krista Allred, a mortgage loan originator, told realtor.com®.
Categories: REAL ESTATE