We know that the coronavirus pandemic has caused a lot of financial uncertainty, but we're here to
help. While officials and banks are implementing several options to help consumers, it's important that
you discuss your situation with your NOVA® Loan Officer or service provider before you decide to skip
your mortgage payments.
MORTGAGE FORBEARANCE IS NOT THE SAME AS LOAN FORGIVENESS!
Let’s look at this scenario:
• Mom and Dad have a mortgage payment of $1,500 per month.
• Dad gets laid off, calls the lender, and asks for forbearance.
• The lender allows him to “skip” payments for 6 months.
• Seven months later, Dad is finally back to work, but hasn't been able to save any money during the
Forbearance is lifted and lender says, “That will be $9,000 + $1,500, which is now due.” ($10,500)
Dad almost passes out and says, “WHY??”
Lender: “That's the 6 months of forbearance plus the current month.”
Dad: “I can’t do that, can we work something out?”
Lender: “Sure, we will spread out the $9,000 over 12 months.”
Dad: “Phew....ok, good. What will that look like?”
Lender: That will be $2,250 a month for the next 12 months.”
Dad: “OMG!!! I can't afford that.”
Lender: “Sorry.....those are the only options we offer”
Dad: “Can I refinance?”
Lender: “No because the loan went into forebearance.”
PLEASE REMEMBER THAT FORBEARANCE SHOULD BE A LAST RESORT.
Homeowners should make every effort to continue to make their mortgage payments. Forbearance
always results in the borrower paying more over the life of a loan. There are other ways that
homeowners can seek relief and continue to make their mortgage payments. Contact a NOVA Loan
Officer for more information.