Is everyone going to go into foreclosure?

amother

Blush

Tue, May 12 2020, 3:51 pm

amother [ Oak ] wrote:

Thanks. Do I need to qualify for this. Dh won’t agree to go to a food bank. He is too picky about his food. We make too much money even though we have huge debt.

My husband is like that too. He won't take from a food bank and he wont take the free kosher lunches that are offered in our local school.

It's frustrating but I can deal with it or have screaming matches all day.

amother

Lavender

Tue, May 12 2020, 4:06 pm

amother [ Blush ] wrote:

Or you can go yourself and pick up food. There is no reason to go into debt when there is free food out there for all and it’s not charity.

amother

Tue, May 12 2020, 4:07 pm

amother [ Blush ] wrote:

That’s funny, I totally took the lunches even when I didn’t need them at first (now things are tighter so it helps a bit I guess!)
Why not?

amother

Maroon

Tue, May 12 2020, 4:42 pm

OP, be thankful you’re at least getting unemployment; not all of us are so lucky!

We’re hoping to get approved, but we applied weeks ago and the claim is still pending. We had no choice but to put our mortgage into forbearance and to push off any other bills we could. We also spent a lot on getting kids set up for homeschooling, making Pesach for the first time, and we are still being billed for full tuition. Lucky teachers still getting paychecks...

May Hashem help us all!

amother

Brown

Tue, May 12 2020, 7:01 pm

amother [ Lavender ] wrote:

Or you can go yourself and pick up food. There is no reason to go into debt when there is free food out there for all and it’s not charity.

I don't get this. It's not charity? Food subsidized by the gov and food pantries are definitely charity. Of course if you can't afford rent or mortgage, you should use these programs--that's what they're meant for. It's definitely meant for people who can't afford food and basic expenses.

amother

Tue, May 12 2020, 7:15 pm

amother [ Brown ] wrote:

That’s not true, my kids’ schools specifically said even if you don’t qualify for free lunches, you should come get. Honestly I’ve been giving the govt 30% of my money for years. I certainly don’t feel like this is charity! Food pantries are different.

amother

Coffee

Tue, May 12 2020, 7:26 pm

I wonder whether this will impact people's behavior for the long term the way those who lived through the Great Depression viewed finances differently - or at least many of them did.

My parents remember the Depression and they experienced real financial fear because there were no safety nets until Roosevelt was elected in 1932 and created the social net of the New Deal. And even then things were still hard and people scrimped.

My parents went into Civil Service positions (teachers) because they were safe. They lived below their means and saved for a rainy day. Perhaps people will adjust their living expenses to be in line with their income.

On the funny side, they saved all kinds of things like string and boxes because you never knew when you might need something. Their home didn't look like the hoarders but my word the basement was crammed with stuff because nothing was thrown out and the closets were neatly packed with stuff that wasn't yet ready to be put in boxes for storage. I inherited that tendency because - aside from not wanting to create landfills of paper and plastic - I always have a second when I am about to toss something when I wonder whether I should save it because I might repurpose it for something Very Happy

The economic hardship is disproportionately hard on some people but I do think perhaps people will better understand why the most basic financial recommendation is to have at least six months of savings in an emergency fund.

amother

Hotpink

Tue, May 12 2020, 7:42 pm

[quote="amother [ Tan ]"]

amother [ Hotpink ] wrote:

Lots of ppl will go into foreclosure. And lots of ppl are going be completely messed up because of the forbearance.[/quot

Can you please explain why forbearance will mess us up? Thanks

Because it's not as it seems. It's not a gift. You are going to have to pay it back. It will affect your lending abilities in the future. We already have to ask on each mortgage loan, if you requested forbearance. You will not be able to get a loan until your I believe a year possibly two out of forbearance. We were told if you choose the option to add the months to the end of your mortgage loan, you will be considered in forbearance for all those years. if you have a cosigner you will be messing up your cosigner as well. Basically it's a last resort it's not a gift.

amother

Tangerine

Tue, May 12 2020, 9:51 pm

I lost my job and I got on unemployment and a forbearance on my mortgage. DH still has his job, working from home. Every month I put an amount equal to that months mortgage payment into a savings account. I originally took the forbearance because things were really shaky in the beginning, I didn’t even know if or when I’d be getting unemployment, I certainly didn’t expect the extra $600/wk. I am still happy I did this just in case CH”V I need the money in the near future, for example if DH loses his job. Our credit scores are over 800 and we see no obvious need for credit since we already have our mortgage and more than enough credit cards, besides how much could the credit score drop already just from a forbearance? 100 points? We’d still be over 700.

Can anyone give me a good reason why I keep being told forbearance is ALWAYS such a terrible thing?

amother

Coffee

Tue, May 12 2020, 10:07 pm

Obviously one should consult one's mortgage lender but it appears that those seeking mortgage relief or forebearance during the pandemic are doing so under the CARES Act which specifically prohibits reporting it negatively to a credit bureau although it might do so under ordinary circumstances.

I am not a mortgage specialist but I highly doubt whether deferring mortgage payments during the pandemic so long as one does so with approval of lender is going to adversely impact one's credit because there are people who are going to be doing far worst things in terms of hits to their credit.

I think some people are confusing forbearance and forgetting that it ultimately needs to be paid - not saying that is true of any posters but just in general in terms of what I have read from renters and people with mortgages. I think it prudent that people should think about deferring payments in these uncertain financial times. One always has the option to pay it off quickly once things become more certain. While not quite the same thing, I have a very small mortgage amount left and I could have theoretically paid off the balance several years ago. However, since my interest is low, I feel better knowing that I have cash and investments in the event of an emergency and am fine with paying my very low monthly mortgage payments each month.

Summary of provision of CARES Act - again one should of course contact one's lender and work with them and get written authorization for anything that is agreed upon

Federal relief provided for in the CARES Act calls for lenders to be flexible with mortgage borrowers, automatically granting payment forbearance of up to 90 days for all who request it and not reporting negatively to the credit bureaus. It also requires lenders to work with borrowers after that period to work out repayment schedules or modify mortgage loans as needed, with the goal of keeping them in their homes. The CARES Act also suspends all foreclosure actions until at least May 30, 2020.