CARES Act allows homeowners to delay mortgage payment, but there's a catch | KOB 4

CARES Act allows homeowners to delay mortgage payment, but there's a catch

Hawker Vanguard
Updated: April 10, 2020 10:31 PM
Created: April 10, 2020 09:43 PM

ALBUQUERQUE, N.M.- The CARES Act, passed by the U.S. Congress and signed by Pres. Trump, gives homeowners the opportunity to delay mortgage payments.

However, an Albuquerque-based mortgage loan officer said people should proceed with caution.

"If you can make your payment, make your payment," said Roger Gettler, a mortgage loan officer with Legacy LLC. :Figure out a way to do it every single month. There is no forgiveness, you have to pay that money back."

In a majority of cases, the money that a person had deferred is due in a lump sum.

Using Suntrust Bank as an example, they require an account to be current after the forbearance period.

That means if a person has a $1,000 mortgage, and they do not pay for April, May and June, they will owe all $4,000 when they make their July payment. 

Gettler wants people to think hard about whether they should take a break from their mortgage payments — especially if their finances haven't been affected by the pandemic.

"It should be for people who are in need of deferred payments," he said. "They're allowing everybody, even if you are working and your job hasn't been affected. And that's really not what forbearance is for."

Gettler said people who are in a good spot financially should consider refinancing their home mortgage. He said rates are at an all-time low, and they likely won't stay that way.

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