Letter To A Mortgage Holder
This unanticipated and unprecedented pandemic is affecting everyone financially.
If you have made the big investment in a home, and have a business relationship with a mortgage holding bank, as a borrower, you have certain responsibilities and certain rights. Specifically, you are not “at fault” in this situation, when it comes to financial planning. There is no tutorial for this crisis.
People have called us and emailed us asking about what they should say to their mortgage holder if they can’t make their mortgage payments during coronavirus closures. We have put together this handy script that will help you to start a dialogue, to get clarity on what’s happening to your mortgage during the pandemic.
Letter to a mortgage holder:
“Due to coronavirus closures, which have impacted us financially, we need to revisit our mortgage agreement and try to plan for the future.
The coronavirus has dramatically decreased our income, and many sources of replacement income are pending. Everyone knows that unemployment benefits are taking weeks or months to process. The same is true for many other kinds of financial stimulus.
We want to remind you that the national government mortgage companies Freddie Mac and Fannie Mae have directed mortgage holders to offer forbearance during this time.
That’s incredibly important, because so many mortgage holders will not have the ability to keep up with regular payments until after coronavirus closures are mitigated.
We request immediate mortgage forebearance (as of March 13) that allows our mortgage interest timeline to be paused for the duration of coronavirus closures. Regular payments can resume when there is a consensus that the American economy has regained some semblance of balance, and coronavirus closures, which affect finances broadly, are being safely lifted.
We request that all communications on this go through our contact at _________.”
This script can be sent as a letter or email, or read over the phone. The last part is critically important, because some any mortgage holders are tough to reach on the phone, and there’s hardly any way to verify that they’ve heard you or are willing to honor your agreement. If you share your phone number and ask them to call, the ball’s in their court. Then, if problems persist, it might be necessary to get legal counsel. Remember, as a borrower, you are entitled to modifications at this time.
The best mortgage holders are anticipating that their borrowers will have reduced ability to pay through no fault of their own, and they’re getting on the ball. If yours is not, the above reminder can prove effective.