Why you should think twice about delaying your mortgage payments

Forbearance, an agreement with your mortgage company that allows you to reduce or delay payments for a set time, is a possible remedy for homeowners unable to cover costs because of the coronavirus pandemic. In recent weeks, many of Allen's friends have lost their jobs, seen their income drop or have tenants unable to make rent and they are now struggling to pay their mortgage.

With millions of people experiencing financial hardship because of the outbreak, the requests for mortgage forbearance skyrocketed by 1,270% between the weeks of March 2 and March 16, and by another 1,896% between the weeks of March 16 and the week of March 30, according to the Mortgage Bankers Association.

The recently passed Coronavirus Aid, Relief, and Economic Security act, or CARES act, allows impacted homeowners with federally backed loans to delay paying their mortgage and get a break on accumulating interest for up to a year.

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Source: MSN.com