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I'm trying to follow why this is fine. I don't know much about this stuff. If you lose your job for 5 months, but get your loan deferred, won't you just need t

I'm trying to follow why this is fine. I don't know much about this stuff. If you lose your job for 5 months, but get your loan deferred, won't you just need to 6x the the normal payment once you get your job back? Granted most loan terms won't end right when you get your job back, but I feel like many individuals will not be able to keep up with their debt if they lose several months of income. Is this fixing a problem or just delaying the realization of losses so people don't go bankrupt right now?

billme 6y ago
Comment you replied to clearly says: “Fannie & Freddie are fine with tacking all deferred payments to the end of the loans instead of requiring a lump sump payment.” Meaning the payments missed would not be due when payments restart, but added to the end of the current monthly payments.
FireBeyond 6y ago
That's the issue, while a lot of people are saying "Oh, you can get your mortgage modified", a lot of lenders are saying "We're giving you three months deferment. At the end of that three months, the next mortgage payment is due, plus the three deferred payments".
- segmondy 6y ago
  You have to make sure to ask for it to be added at the end of the loan and not a lump sump payment due after the deferral. The interesting thing is that these mortgages are parceled up and sold as bonds. So the investors require payments. If I bought a 4% bond, I expect my 4% no excuses. I believe this is why the govt is going to start buying bonds. There really is no such thing as a free lunch.
deleted 6y ago
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rwmurrayVT 6y ago
I'd expect if you defer 6 months of payments then your original pay off date would be moved back 6 months. Basically add 6 months to your term and additional monthly payments to match.
jiveturkey 6y ago
The comment you're replying to stated it wrong. It's not that > Fannie & Freddie are fine with tacking all deferred payments to the end of the loans F&F require no balloon payment. Deferred payments must be tacked on to the end, not as a balloon payment, extending the term.

billme 6y ago

Comment you replied to clearly says: “Fannie & Freddie are fine with tacking all deferred payments to the end of the loans instead of requiring a lump sump payment.” Meaning the payments missed would not be due when payments restart, but added to the end of the current monthly payments.

FireBeyond 6y ago

That's the issue, while a lot of people are saying "Oh, you can get your mortgage modified", a lot of lenders are saying "We're giving you three months deferment. At the end of that three months, the next mortgage payment is due, plus the three deferred payments".

segmondy 6y ago
You have to make sure to ask for it to be added at the end of the loan and not a lump sump payment due after the deferral. The interesting thing is that these mortgages are parceled up and sold as bonds. So the investors require payments. If I bought a 4% bond, I expect my 4% no excuses. I believe this is why the govt is going to start buying bonds. There really is no such thing as a free lunch.

deleted 6y ago

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rwmurrayVT 6y ago

I'd expect if you defer 6 months of payments then your original pay off date would be moved back 6 months. Basically add 6 months to your term and additional monthly payments to match.

jiveturkey 6y ago

The comment you're replying to stated it wrong. It's not that > Fannie & Freddie are fine with tacking all deferred payments to the end of the loans F&F require no balloon payment. Deferred payments must be tacked on to the end, not as a balloon payment, extending the term.