Mortgage Payment Options

Frequently asked questions related to mortgage payment options during COVID-19 pandemic

 

Should I request mortgage payment modifications or deferral?
First, we recommend you assess your individual situation. If you can pay your mortgage, you should continue to make your regular monthly payments on time. Deferral and forbearance options are not right for everyone, and may not apply to all mortgages or borrowers. Also, they may create challenges down the road in making up payments, so it may be best to stay on your current schedule if you are able.
Will Cape Cod 5 foreclose on my home if I miss a payment?
Cape Cod 5 has rarely encountered the need for foreclosure given our responsible lending practices and efforts to get each borrower into the right mortgage for them – and we expect that to remain true. At the same time, we realize that we are in unprecedented times resulting in unexpected financial difficulty for many. As we previously shared, the Bank has suspended all previously initiated foreclosures and evictions unrelated to COVID-19 for a 60 day period due to the pandemic. We will work with any borrower that is facing financial hardship to ensure they can avail themselves of the solution that best suits their needs.
What options are available under the CARES Act?
Provisions set forth under the Coronavirus Aid, Relief and Economic Security (CARES) Act do not apply to everyone with a mortgage. The CARES Act allows homeowners with federally-backed loans to delay mortgage payments for up to a year. It is important to note that this is not loan forgiveness, and the payment obligations are expected to be met once the forbearance period is over – which could cause issues in the future when the payments come due. 
What is the difference between deferral and forbearance?
A loan payment deferral is an agreement between a lender and a borrower that allows payments to be postponed temporarily and added to the end of the loan. With loan forbearance, payments may be skipped for a certain period of time, and a plan for the skipped payments will determine how they get made up in the future. Neither of these options are loan forgiveness.
What can I do if I am having trouble making mortgage payments due to COVID-19?
Cape Cod 5 has been working with hundreds of its mortgage customers during this pandemic to identify appropriate arrangements given their individual circumstances, which includes availing themselves of payment modification options which depend on the type of mortgage and the particular situation. If you are finding that you temporarily cannot make your mortgage payment at this time, contact our team to discuss your options.
Will my credit be impacted if I miss a payment or submit a mortgage payment late?
No, during this time, Cape Cod 5 will not report late or missed payments to credit agencies. Again, as your trusted financial partner, we encourage you to make your monthly payments on time if you are able to, and if you are encountering temporary difficulty making your payment, contact us regarding your situation.

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