Forbearance News: Borrowers Can Now Defer Payments Until The End Of Their Loan

Forbearance News: Borrowers Can Now Defer Payments Until The End Of Their Loan

Written By: Jaymi Naciri

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Previously, there was some question as to whether borrowers would have to make a lump sum payment at the end of their forbearance period or enter into some other type of agreement that would potentially increase their monthly payments.nbsp;nbsp;

Payment deferral is one of the repayment options, they said. Servicers will begin offering the payment deferral repayment option starting July 1, 2020. In addition to the new payment deferral option, borrowers with COVID-19 >

Up to 12 months of deferred payments can be added to the end of the loan term. The deferred sums to be repaid include principal, interest and escrow advances, said National Mortgage News. Borrowers will not have to make the missed payments in a lump sum.