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COVID-19-Related Payment Forbearance

COVID-19-Related Payment Forbearance

Has the COVID-19 pandemic hurt you financially? Are you having trouble making your mortgage payments? We want to help! If you have financial problems due to COVID-19, we’ve created a payment forbearance plan that may be a good option for you.

How do I qualify for payment forbearance?

If you’re dealing with financial hardship because of the COVID-19 pandemic, you may qualify for forbearance. For example, you may qualify if you are:

  • Losing income
  • Missing work
  • Caring for a family member who has COVID-19.

How does forbearance work?

If you qualify for a forbearance plan, we’ll allow you to temporarily stop making your regular mortgage payments during your forbearance period (usually several months). Also, we will not charge you any late fees, and we will not file any negative credit reports against your account while your forbearance is in effect—but interest will continue to accrue.

But note: The total of all of the payments you don’t make during your forbearance will be due and payable when your forbearance period ends. So before your forbearance is over, you’ll need to contact us so we can help you develop a plan to pay what you’ll owe when your forbearance ends.

What happens when my forbearance period ends?

A forbearance stops your mortgage payments while it is in effect. To avoid a negative impact on your credit score, you must bring your account current within the month after your forbearance ends. Depending on your loan type and who owns your mortgage, you may need to pay other charges and fees as well.

After your forbearance ends, these payment options may be available to you depending on your loan type, financial eligibility, and investor requirements:

  • Reinstatement. This is where you pay back in full the total amount you owe within the month after your forbearance ends. This includes all of the payments we suspended during your forbearance. If you can afford it, reinstatement is the simplest and quickest way to bring your account current.
  • Repayment Plan. A repayment plan is where we divide up the amount you owe and “spread” it across a number of months, adding that extra amount to your regular mortgage payment. Note: Until you are fully current in your payments, we may report your account to the Consumer Reporting Agencies as “past due.” That is why it is in your best interest to bring your account current as soon as possible.
  • Deferment. This option “moves” your past-due payments to the end of your loan term—usually as a lump sum that you pay at maturity, when you pay off your mortgage, or when you sell or transfer your property to someone else. Note: Until you sign a deferment agreement with us, we may report your account as “past due” to the consumer reporting agencies.
  • Loan modification. We may be able to permanently change the terms of your mortgage to bring your account current. A loan modification may require approval from the owner of your mortgage, followed by a “trial period” of several months—during which you must consistently make your new payment before we can finalize your modification. Until the modification agreement is signed, notarized and processed, we may report your account as “past due” to the consumer reporting agencies.

Be sure to begin discussing these options with your Shellpoint SPOC (single point of contact) at least 30 days before your forbearance period ends. Your SPOC will help you decide which post-forbearance plan is best for you, and will help you start the application process as soon as possible.

How do I apply for a forbearance?

If you think a forbearance plan is right for you, sign in to your online account with your Username and Password, and click on your loan number to go to your dashboard. Then click on the banner titled Click here for COVID-19 assistance and follow the on-screen prompts and instructions.

After you apply, be sure to keep on making your regular mortgage payments until we approve and finalize your forbearance agreement.

You can make mortgage payments at any time during your forbearance period, and we encourage you to do so. Every payment you make will reduce the amount you’ll need to pay at the end of your forbearance.

Don’t forget: The total of all payments you don’t make during your forbearance will be due and payable within 30 days after your forbearance period ends.

How do I set up my online account?

If you haven’t yet set up your online Shellpoint account, register today! Enter the Username and Password of your choice; then click on Create Account and follow the on-screen instructions.