Is your borrower struggling financially? Have they fallen upon hard times? Do they need you to forbear on certain portions of the loan so that they do not fall behind on payments? A forbearance may be the perfect solution for your borrower and you. However, if you are an unlicensed lender, before you rush into …
During the COVID-19 crisis, an unprecedented number of borrowers requested loan payment deferrals from their lenders. But even without a national crisis, sometimes borrowers hit hard times and need help for a short period to manage loan payments. Lenders will need to evaluate a particular borrower’s facts and decide whether to proceed with a loan …
Forbearance Agreements 101 – What To Do When Your Borrower Can’t Pay Read More »
A forbearance is the process of offering borrowers a temporary reduction in the amount they pay on their regular installments or a periodic deferment of mortgage payments. Debtors opting into forbearance agreements will be obligated to repay the remaining or deferred amounts back. A forbearance is a tool implemented to assist borrowers that are experiencing …
The lending world just got turned upside down. All strategies a mortgage lender used to rely upon to understand borrower defaults are no longer reliable. In this new normal, a lender must be tactical when understanding what to do when a borrower defaults, because a one size fits all solution does not work in a …
[COVID-19] California Foreclosures 101 – Strategies for Defaulted Loans Read More »
As counsel to hundreds of financial institutions, our number one request continues to be navigating the best strategy for loan payment deferrals and loan forbearance agreements. The expectation is that requests will significantly increase in the month of May because most of the country will have been under some form of lock down in the …
[COVID-19] Loan Forbearance Requests Continue on a Dramatic Incline Read More »
As the COVID-19 pandemic sweeps the nation and disrupts almost every aspect of the economy, lenders are facing the reality that many of their borrowers cannot make payments. The simple response is for the lender to declare a default and initiate foreclosure (non-judicial foreclosures of business purpose loans remain mostly unaffected by recent government restrictions). …
[COVID-19] Modification vs. Forbearance in the Age of COVID-19 Read More »
As individuals and businesses are increasingly feeling the economic impact of government restrictions aimed at curbing the impact of COVID-19, they are turning to their lenders in increasing numbers seeking temporary relief to help them weather the current storm. This trend is exhibited in the most recent Forbearance and Call Volume Survey conducted by the …
During the COVID-19 crisis, an unprecedented number of borrowers requested a loan payment forbearance from their lender. But even without a national crisis, sometimes borrowers hit hard times and need help for a short period to manage loan payments. Lenders will need to evaluate a particular borrower’s facts and decide whether to proceed with a …
Forbearance Agreements 101 – What to Do When Your Borrower Can’t Pay Read More »
In times of crisis, people often try to help one another to pull each other through. In the current COVID-19 economy, many people are losing jobs, small businesses are struggling, and many lenders are feeling the fallout from those factors. Borrower defaults are on the rise, and many are reaching out to their lenders for …
[COVID-19] Managing Loan Defaults During the COVID-19 Crisis Read More »