What is forbearance?
Forbearance is only a postponement of the payments being due; where there is no negative impact to your credit as long as the proper process is followed.
- The guidelines are not dictated by GMFS; therefore we must abide by the process and procedures put in place by The Federal Housing Finance Authority (FHFA) and HUD. If you have a conventional loan then SLS/GMFS must follow the FHFA Guidelines. If you have an FHA, VA or Rural Development loan we must follow HUD guidelines.
- Upon the expiration of the forbearance period which is generally 90 days, if you cannot pay the missed payments in full then the modification options may be available. Our customer service center (SLS) will be able to discuss the available options to you based on your current loan and the above mentioned guidelines.
What is a Modification?
A Modification is when the original terms of your loan are modified to new terms often including the extension of the maturity date of your loan.
How do I know if I qualify?
- If you have a Conventional Loan, SLS will go over the different modification options including an Extend Mod, Cap and Extend Mod or a Flex Mod
- If you have an FHA, VA or Rural Development loan you will need to complete a Residential Mortgage Assistance Application and return to SLS to determine if you qualify for a modification to your mortgage and if so what type of modification.
- Options are available to all borrowers who are current on payments and no more less than 30 days past due at the time of the federal declared disaster, March 13. 2020,
- Please keep in mind, these guidelines are NOT THE SAME FOR EVERYONE and it depends on your current loan. As mentioned above, if it is a Conventional versus FHA,VA or RD loan as each have different rules and guidelines to follow.
Forbearance plans are currently available up to a maximum of 12 months on Conventional loans and 3 months on FHA, VA and Rural Development loans.
- Your mortgage statement will show the payments that were not made during the forbearance period as delinquent, as it is currently “contractually” delinquent. This however WILL NOT be reported to the credit bureau as long as the terms and conditions are met for the forbearance
- If you are affected by COVID-19 and want to find out whether you are eligible for payment relief or other mortgage assistance options, please submit your inquiry through the Message Center by logging into your account at gmfsmortgage.servicingloans.com or call Specialized Loan Servicing (SLS) at 1-866-392-1860 to initiate the Forbearance Plan and Modification options to start the process.
- We cannot initiate the Forbearance plan at GMFS- It must be done through our customer service center (SLS).
For our customers that are small business owners or self-employed, you may want to consider a Paycheck Protection Program (PPP) Loan.
These loans are authorized under the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) and administered by the Small Business Administration (“SBA”). Self-employed individuals and most businesses with fewer than 500 employees are eligible to receive a loan in an amount equal to 2.5 times monthly payroll expenses. The loan amount may be forgiven if certain requirements are met. Our affiliate, ReadyCap Lending, is a licensed SBA lender offering PPP loans. Applications can be submitted at your local bank or at ppp.readycapital.com. Please include “GMFS” in the referral section when prompted.