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Aug 6th, 2022
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How to OCR Forbearance Agreement

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hey welcome back its Jason Walter here Im making this video today because I almost fell victim to the loan forbearance program of the cares Act and the carrots act as part of that 2.2 trillion dollar stimulus package that was just passed a couple of weeks ago so my lender offered me this program the loan forbearance program my opposite to pass after I found some major pitfalls with this program and Ill discuss that in this video its been reported that a record number of homeowners are taking advantage of this loan forbearance program according to some reports theres been a 2,000 percent increase in homeowners deciding to do this but I really worried here is that some people are not reading the fine print but I did Im going to report that to you so you can make an informed decision so you can decide whether or not this program is right for you the large increase in loan forbearance is is really no surprise because governors across the u.s. are closing their non-essential businesse

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Forbearance itself doesnt have a direct impact on your credit score, as long as you keep up with your payments as agreed (i.e., making reduced minimum payments or resuming regular payments once forbearance is over).
Forbearance also means that you can avoid foreclosure for your inability to pay missed loan repayments so that you can prevent your personal assets from being seized by your lender during the period for payment relief. It also allows you to pay more critical expenses, such as rent, utilities, or medical fees.
Most homeowners can temporarily pause or reduce their mortgage payments if theyre struggling financially. Forbearance is when your mortgage servicer or lender allows you to pause or reduce your mortgage payments for a limited time while you build back your finances.
Forbearance lets you skip some or all of your monthly mortgage payments for as much as a year. But forbearance should be a last resort, something to avoid if at all possible. While it can be a lifeline in the short-term, forbearance will undoubtedly lead to credit issues for many down the road.
It Can Hurt Your Credit Before you choose to go for mortgage forbearance, you should know that your loan service provider might report you to the credit bureaus. This might affect your credit score as the forbearance period will amount to non-payment of your bills, even if its temporary.
Ordinary Capital Resources (OCR)
While forbearance agreements and repayment plans spread a couple of payments over a longer period, loan modifications permanently alter the monthly payment.
At the end of a forbearance plan, you must repay any missed amounts but you have options. A forbearance plan allows you to reduce or suspend mortgage payments while you regain financial footing.

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