Table of Contents:

• What is a mortgage forbearance?
• The 4 pros of a mortgage forbearance
• The 4 cons of a mortgage forbearance
• How does a forbearance plan affect foreclosure activity?
• How do I decide if a forbearance is a good decision for me?
• What should I be aware of when I request a forbearance from my mortgage lender?
• What is a COVID-19 forbearance plan?
• How do I get a COVID-19 forbearance plan from my lender?
• Are there any problems with the COVID-19 forbearance plans?
• What is a COVID-19 partial claim?
• How do I request a COVID-19 partial claim?
• What happens if I get stuck in a forbearance plan that requires full payment at the end of the forbearance period and I can’t pay it in full?
• 5 things to be aware of if you’re trying to transition out of a forbearance plan to a loan modification or repayment plan option
  

Recently, I’ve spoken with a number of homeowners who are struggling with LoanCare. It’s clear that working with LoanCare has become a nightmare for borrowers. Here are the four parts of the LoanCare mortgage nightmare:

This is one of the most common questions I’m asked by homeowners. There are several factors that go into answering this question. The most important calculation that will determine your chances at modification approval is the front-end ratio.

As part of the modification process, the bank will ask you to send in income documentation and a list of household expenses. This documentation will be used by the bank to calculate your front-end ratio, which is a crucial part of the approval process.

It is no secret that Wells Fargo is one of the most fraudulent banking institutions in business these days. They have been sued, fined and publicly admonished for perpetrating fraud against their customers. A quick Google search of Wells Fargo will bring to light numerous articles about all the different ways Wells Fargo has manipulated and defrauded their customers.

Within the last year, two relatively new mortgage servicers have come on the scene. They have been taking over the servicing rights to several large loan portfolios.

While I personally believe purchasing servicing rights of loans should be illegal (due to all the problems that occur when loans are transferred), it is perfectly legal for a bank to sell the rights of the loan to another servicer.

I’ve been getting a lot of calls lately from people struggling with a lender called PHH. 

PHH is a servicer who has taken over the servicing of several thousand Ocwen mortgages within the last 5 months. To be frank, the transfer did not go well and many homeowners around the country are experiencing issues. PHH seems to be completely overwhelmed and unable to keep up with the new loans they’ve taken over.