Blog Stories Forbearance is NOT Forgiveness

Forbearance is NOT Forgiveness

By Kim Parmon, March 20, 2020

What a time, friends.  I hope you all are safe and healthy.  I’ve been talking to many of my clients this week and watching what’s being shared on social media.  There is a lot of concern over what happens over the next few months out there.  People want to know how they will pay their bills!  There is an NPR article being widely circulated that states that people can seek up to a year’s worth of mortgage relief.  I’m seeing friends and loved ones share this and celebrate.

Well, I hate to rain on your parade, but that article isn’t what you think it is.  I did some real research on this myself today.  I personally have four mortgages, which are serviced by two providers.  Both providers had links to “COVID 19 relief effort” information on their main pages.  I clicked the links and read through what was being offered, and it turns out it’s forbearance.  It’s not a pause on payments, which is what people want.  It doesn’t mean that you get to stop paying and pick back up where you left off in a couple of months.  It actually works like this:

Say you have a $2,000 a month mortgage payment.  You have been laid off due to all of the closures from COVID 19 and you need some relief.  So you talk to your lender and they allow you to stop paying your mortgage for six months.  During that time, you find a new job and start to get some money together again and you accumulate $5,000 since you aren’t paying your mortgage.  That’s all great news.  Now, month seven rolls along and your forbearance period is over.  The bank says you owe them $14,000, due immediately.  You managed to pull together $5,000, but you’re still short $9,000.  At this point the bank can issue a foreclosure notice because you owe them money you can’t pay.

Friends, I don’t write this to scare you.  We are all in this together and we will get through it.  It is going to be ok!  But I urge you to really research your options before jumping into a situation that might damage you down the line.  What we need is a true pause on both mortgages and rent payments right now.  Please call your senators and elected officials!  Make your voices heard.  If you find yourself in a tough position, I am here to talk.  We can strategize and plan together.  You are NOT alone.  Reach out to me any time, we are in this together.

xoxo,

Kim

 

Kim Parmon

Principal Broker

Kim is the first person who will tell you she never expected to be a Realtor. She's had many creative jobs in the past and spent years as a high-volume bartender-turned-bar owner, which she feels gave her an essential skill that translates beautifully into her career in real estate: the ability to juggle 1,000 things at the same time while keeping everyone calm! She became obsessed with buying a house after the market crashed in 2009, finally buying her very first teeny-tiny dilapidated bungalow as a short sale in 2011. She and her husband, Matt, spent a few years fixing it up, then sold it for a profit and bought another project. And then they did it again. And the rest is history! Kim's talent for finding diamonds in the rough has made her into one of Portland's most sought-after investment Realtors. She loves seeing the missed potential in properties and has all kinds of tricks up her sleeve to find great investments but this talent is equally useful when it comes to traditional buyers and sellers. When you buy a home with Kim's assistance you can be sure that she is looking at all angles of the purchase to make sure it aligns with your financial goals as well as your lifestyle and she will stop at nothing to make sure you are taken care of! Some of her clients think she's gotten their offers accepted through sheer force of will! When you list a house with her she will go above and beyond to present your house in the best possible light to make sure you maximize your return on investment. Above all else, Kim prides herself on her integrity and believes that everyone deserves a caring Realtor partner who truly listens and tries to do what's right for her clients, even when no one is looking. She is thrilled to call this beautiful city home and can't wait to help you make your dreams come true through real estate.
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  • T: 503-438-5101
  • kim@livingroomre.com

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