How Does Mortgage Forbearance work under the United States Treasury Cares Act?
Being Licensed Washington State Attorneys practicing bankruptcy and mortgage mediation law in Bellevue and Seattle, WA. we often get asked about how mortgage forbearance works under the United States Treasury Cares Act. In a Media Release on April 3rd, 2020 the CFPB or
Consumer Financial Protection Bureau released a video on How the mortgage forbearance works under the cares act.
Due to the Covid-19 Outbreak, many mortgage lenders are offering Forbearance assistance. Forbearance means your mortgage lender or bank may be willing to pause or reduce mortgage payments for a limited period of time. It does not eliminate your payment or erase what you owe on your mortgage. With a mortgage forbearance missed or reduced payments must be repaid at a future date.
It is recommended that if you are able to make or keep up with your home mortgage payments, do so. A forbearance only delays the payments to a future time when you’ll have to make them up on top of your normal mortgage payments.
Here is the video regarding How Mortgage Forbearance Works Under The Cares Act that was released by the Consumer Financial Protection Bureau or CFPB.
For information or questions regarding legal assistance for your home mortgage, mortgage mediation, mortgage modification or bankruptcy in Washington State including King, Snohomish and Pierce counties and the cities of Bellevue, Seattle, Everett, Tacoma, Olympia, and Western Washington:
If you have any legal questions regarding mortgage forbearance with your mortgage lender or bank, please give us a call. We may have some insight into different legal options for you besides forbearance including mortgage mediation or possibly even bankruptcy. When we have additional information regarding your unique financial situation then we can discuss your legal options.
Contact Advantage Legal Group in Bellevue at 425-452-9797
Some of history’s most successful business owners including a past president have gone through bankruptcy. Henry Ford, Walt Disney, even Abraham Lincoln all went through bankruptcy. Bankruptcy can actually be good for society, allowing people to make mistakes and recover from them and move on. Without bankruptcy, we wouldn’t have the Ford Motor Company (Ford’s second try) or Abraham Lincoln wouldn’t have gone into politics ( he first had a failed general store). Let’s demystify bankruptcy today by laying down the facts:
In order to qualify for Chapter 7 Bankruptcy, there are seven basic requirements:
- – Client’s annual income must be below the median
- – $52,384.00 for an individual with no dependents
- -$65,802.00 for couple with no dependants ( for each dependant add about $9,000 to $10,000)
- – Filed prior bankruptcy in the last 8 years?
- -Equity in the home?
- -Amount of unsecured debt (credit cards, medical bills, auto deficiencies, and mortgage deficiencies)
Once a client qualifies for bankruptcy they usually ask if they’re going to lose anything/everything and the answer is usually no. Most clients don’t lose anything they own. However, everybody’s situation is different and it depends on your own individual circumstances. Following are a list of exemptions:
-Homestead $125,000 (up to) State
-Wildcard $12,725 Ind $25,450 JT
-Household $12,250 Ind $24,500 JT
-Jewelry $1,550 Ind $31,00 JT
-Tools Trade $2,300 Ind $4,600 JT
-Auto $3,675 Ind $7,350 JT
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