Mortgage Loan

BEWARE – Why I Cancelled My Mortgage Loan Forbearance Offer

Why I Cancelled My Mortgage Loan Forbearance Offer – The CARES Act // After learning about some MAJOR pitfalls of the mortgage forbearance agreement and program, I decided to decline my forbearance mortgage offer from my real estate loan servicer. In this video, I discuss what is mortgage forbearance which is part of the COVID CARES Act, how this may affect our housing market 2020 and could this cause a housing bubble or housing market crash 2020. What’s particularly concerning is loan forbearance varies to some extent from lender to lender. For example, one loan servicer may offer 3 months of no mortgage payment while another offers 6 months.

A $0 mortgage payment for several months may sound enticing but there are some disadvantages of not paying your mortgage including a POTENTIAL negative impact on your credit score.

So, if you’re curious what is loan forbearance or what is mortgage loan forbearance as part of the 2020 CARES Act, the pros and cons of what is forbearance, then this video is for you.

Comment below with any questions! Do you think this may cause a housing crash 2020 for our country as well as our California housing market?

Jason Walter (Sacramento Realtor and native)
Sacramento CA
call/text 916-426-3012
DRE #01923240
Realty ONE Group Complete
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Jason Walter is not a practicing CPA or a licensed attorney or financial adviser. Therefore, the information in these videos shall not be relied upon as tax, legal, or financial advice from a qualified perspective. If you need such advice, please contact a qualified CPA, attorney, or financial adviser. We have taken reasonable steps to check that the information in this video is accurate but we cannot represent that it is free from errors. You expressly agree not to rely upon any information contained in this video – it is for entertainment purposes only.

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#loanforbearance #realestate #stimuluspackage



  1. THANK YOU for watching! Please don't forget to subscribe to stay updated about real estate and personal finance topics! ➜

  2. Thank you respect very good video

  3. I’m on disability from surgery and my mortgage told me about doing this I’m not sure about it I applied for a hardship

  4. Remember, even an average Joe has the power to negotiate. Say he has a ~new home with zero equity, so why not forbear if the equity will still be zero or negative after the economic crisis? They will essentially have to grant a loan modification or else get faced with deed in lieu. If you’re going to go “homeless” (aka bail get a cheap rental), at least make sure the banks can’t make any money. 3 years later his credit score will soar and he’ll back out there buying assets with cash because was smart and divorced from the banks. They need US to survive, not the other way around!

  5. I'm a realtor also. I started doing bpo (broker price opinion). Unfortunately there will be A LOT of foreclosures hitting the market. I might as well get ready

  6. Is your servicer a local bank, regional, or national? I only ask because I just got a letter from my servicer and the language you read is exactly the same.. I use a regional bank. I'm wondering if the wording is standard across the board. I'm now 2nd guessing keeping the Forbearance.

  7. There is no such thing as a PERFECT CREDIT SCORE. People forget that credit means nothing if you can USE IT.

  8. The letter from my lender said the loan would be considered delinquent during the period of the plan and would be reporting it as delinquent to the credit reporting agencies. What happens at the end of the three months was as vague in my letter as it was in yours.

  9. Hi Jason, how did you cancel the Forbearance offer ? By calling in and doing it verbally or buy simply continuing on with your monthly payments

  10. You took 3 to 4 minutes to finally talk about forbearance. 1. It takes a couple months to get your first enhanced unemployment check or generous SBA loan. Then you get a big check that is retroactive to day one for UI which could be used to reinstate the loan, no harm no foul except the credit bureau may scratch their head on why your debt has not changed. Good Point. 2. Modifications are almost always reported to the credit agency and may impact your credit, thus, and may be worse option. 3. The regulations says up to 180 days with no proof of hardship but lenders are generally starting with 90 days and then may provide another 90 days. 4. In CA, most of the big banks have agreed to 90 days before the Federal Regs started. 4. Modification and moving the payment to the end of your loan are two separate things, at least, according to my bank. 5. Because of Dodd’s-Franks, banks a very well capitalized and may just need to lower a quarterly dividend for a quarter. Finally, you mention FannieMac twice. I believe it’s FannieMae. Bottom line it’s part of bigger piece for the 10M laid off workers, people with reduced hours, small business owners to provide some breathing space until they get their retroactive UI check or SBA grant, PPP or EIDL. As a Realtor, aren’t you a contractor? I think you may qualify for UI or an SBA grant. In CA, UI is probably $1050 a week with no payroll or State taxes which for a successful Realtor, effectively moving it up to $1400 a week

  11. 10:4211:32

  12. Oh and don't 4get to mention that some banks CHARGE to see if you qualify for a repayment plan….It Happened 2 me. They wanted me to give them $700 FIRST to see if I qualified for a payment plan and if not, one better hope they will modify your loan.

  13. Video starts at 5:00

  14. Hey bro, my credit is already jacked up. Everything you said means nothing to me

  15. Good stuff Jason! Please continue to keep your messages brief! Thanks👊

  16. This guy was the kid in the class that asked if there was any homework as everyone else was getting up to leave.

  17. This whole thing is completely surreal to me. The economy HAS to be opened next month. How many people are going to foreclose on their homes? Every lender should have an extension to the person's mortgage added on w/o exception. Does anyone honestly think that after say 6 mos, they're going to have the money to pay 6 mos of missed mortgages? Ludicrous.

  18. The fantastic part of having a 540 credit score is one doesn't worry about this shit! LOL

  19. People need to actually read the bill, the forbearance is law and they “servicers” have to comply no questions asked concerning financials etc. The repayment plan is NOT LAW so it’s up to the servicer to decide what of the three options they’ll give you. Lump sum, structured repayment of payments owed, or modification. You will still have to be approved for a modification so it’s not a guarantee. The issue is servicers are losing money by being forced to offer forbearance option. The servicer still has to pay the investor of the mortgage a dividend or return even though the home owner isn’t paying mortgage. I read an article stating that federal backed mortgages might start offering deferrals June July as of now a few banks are offering automatic deferrals.

  20. Great video. There will be a lot of foreclosures when all said and done !! If you can pay PAY. They are waiting to take your home !!!!

  21. The fine print really matters and lots of people are going to get burned if they're not in touch.

  22. Board of Governors of the Federal Reserve System Federal Deposit Insurance Corporation National Credit Union Administration Office of the Comptroller of the Currency

    Consumer Financial Protection
    consumers. The agencies do not expect to take a consumer compliance public enforcement action against an institution, provided that the circumstances were related to the National Emergency and that the institution made good faith efforts to support borrowers and comply with the consumer protection requirements, as well as responded to any needed corrective action

  23. 👍🙏

  24. Good information, thanks for sharing it with us.


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