Requesting mortgage payment forbearance from 5th 3rd bank, or any lender, involves several steps.
Loan forbearance occurs when a distressed borrower pro-actively approaches the lender and asks for reduction or delay of a specific number of payments. Mortgage payment Forbearance is an option only if you are reasonably sure that your hardship is short term.
During the forbearance period, you may refinance. You do not have to refinance with 5th 3rd bank. Shop around and find the best deal.
Does mortgage forbearance affect credit rating? No, but late payments might, depending on how late they are.
Understand, your loan is active and accruing interest during forbearance. Accrued interest will be added to your loan amount, so your payment may go up a little when your loan is reinstated.
If you do not communicate with your lender and just start skipping payments, your lender will assume the worst. Notify your lender early on. Don’t wait until you receive a foreclosure notice.
Here is a to-do list for contacting your lender about mortgage payment forbearance (5th 3rd or any other lender):
* Work up a financial statement – a tally of all monthly expenses.
* Have pay-stubs, bank statements, investment statements, 401-K statements, previous two years tax returns, late notices, credit card statements—anything that shows your hardship.
* Write a hardship letter requesting credit payment forbearance stating that:
1. your current delinquency (or expected delinquency) is caused by circumstances beyond your control (illness, lost employment, etc.),
2. you have a plan to get back on track financially, and
3. you can be trusted to stay current on your payments in the future. (see anchor text for link to sample hardship letter)
* Set aside several hours for the first call to your lender.
* Keep a notebook recording each call, including dates and names.
* Once your file is assigned, get your rep’s name and direct number.
* Request a homeowner’s assistance package.
* Remain respectful and kind, after all the lender does not have to work with you.
* Maintain regular communication with your lender.
* Don’t abandon your house.
* Once the forbearance agreement is in writing, go over it carefully before you sign.
* Ask for an explanation of all fees, loan amount increases, and payment increases.