Offered in the $2.2 trillion stimulus bill or CARES Act that Congress passed in March, forbearance had some unintended consequences for borrowers.
Forbearance is when a lender agrees to let a borrower postpone payments until a later date. The payments are not eliminated.
The coronavirus has thrown us all a curveball, and we know many homeowners are worried about how they will make their mortgage payments. Many mortgage providers have offered to suspend monthly mortgage payments. While saving hundreds or thousands a month may sound like a win, there’s more to consider.