Stimulus Plan and forebearance credit reporting

[iced]

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@Cowboys4Life wrote:

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If ONLY that were true.  That is why they keep stressing that consumers HAVE to work this out with their lender or landlord.  The reality of the situation is if they do not get a new set of terms and get it in writing and this goes to court the consumer IS going to lose in the end if they have not paid.  Consumers have been fortunate in these unprecedented times that they got the reprieve they did but in reality there was no legal basis to provide it for the sheer length of time it has been pushed to.  The majority of the furor over all of this is emotional not legal but when it comes to court emotion won't be factored in.

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+1.

Late is late, regardless of how unusual or legitimate the reasons for that lateness, and a contract is a contract regardless of emotion. The more service-oriented lenders will be willing to work with their clients in forbearance to renegotiate better terms, but not all will.

[tnhomestead]

Remember if you do put it on a card, utilization doesn't have a memory so when paid off your score will bounce right back. The temporary hit may be worth while in this case.

But I think there is going to be a lot of teeth gnashing when the reality in this mortgage forbearance hits. I know a couple people who really really needed it but also a few who just said oh look I dont have to pay. Going to be a lot of hurting folks when the Bill's come through. I am lucky, I have a cheap house and if needed could probably scrap cans and make my payments, been homeless before so when I bought made durn sure no matter what I would NEVER take a chance on losing my home 

Good luck, hope it works out!

[OmarR]

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@iced wrote:

Late is late, regardless of how unusual or legitimate the reasons for that lateness, and a contract is a contract regardless of emotion. The more service-oriented lenders will be willing to work with their clients in forbearance to renegotiate better terms, but not all will.

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100% agree with you.

I just figured all these HEROES & CARES acts (and whatever else is out there) had intervening legislation in regards to these forebearances, in regards to "now" and "later" with what the lender could do and not do.

I have read articles stating that the "this situation is not as grim as people are claiming it to be", etc. I just don't see how that can be true if lenders are going to want their borrowers to be current soon.

[iced]

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@OmarR wrote:

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100% agree with you.

I just figured all these HEROES & CARES acts (and whatever else is out there) had intervening legislation in regards to these forebearances, in regards to "now" and "later" with what the lender could do and not do.

I have read articles stating that the "this situation is not as grim as people are claiming it to be", etc. I just don't see how that can be true if lenders are going to want their borrowers to be current soon.

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The local news would have me think everyone is depressed, anxious, and miserable because of the pandemic. I'd easily believe that some articles are trying to paint a less grim picture if they believe that their readers/viewers can't take any more bad news, even if that picture isn't entirely accurate. I guess there comes a point where it's better to just tell them everything's going to be alright.

Technically, having your credit destroyed, as bad as that sounds, is still less grim than the alternatives: foreclosure, eviction, and homelessness.

[Mland-EC]

Okay my mortgate company reiterated if was not current by May 1 they are reporting as many months as I am behind as of May 1.  I was zero months behind when the pandemic hit, never had a late before that and was zero months behind when I went into forbearance.  I can't find anything on Google (Mod cut - not here - please reference post #18 upthread with regard to our TOS Guidelines) newest stimulus that changes this May 1 date. My mortgage company told me being  on time when forebearance started only prevented the monthly late status from being reported to the credit agency from the day the forrbearance started until May 1 2021, they repeated that to me 3 days ago. They are not going to report a foreclosure or anything like that. If other mortgage compnaies are doing the same if not caught up by today loads of people that are still in forbearance are going to have a surprise drop in thier credit scores in a month or two, even if they are still in Forbearance.

One thing I noticed is indirectly I believe I was dinged almost every month a couple points due to the mortgate BALANCE being reported, it was going higher and higher. They reported thenew blance wiht teh montly pay due being added ot teh current blance.  The blanace was getting higher even went higher than the  original loan amount. I would get a notice in my credit report stating the balance was not dropping verse the original loan amount(no kidding it was going up!). That was just a commrmt on MY FICO, but I am I am betting the algorithm caught that because there was an unexplainable ding in my credit report of about 1 to 2 points per month during that time. I keep very good track of my CC Cards and I can't think of anything else that could of caused this weird drop, who knows. It wasn't  balances on  my cards making that change. If anything my credit card balances all went down a  tiny bit.  Since we were making far less money and  I couldn't pay my mortage I could not justify buying  crap on my credit cards at all so we actually gained a bit of ground on reducing the total balance owed on all CC.
 
I am so glad I had the chance to get this Covid forbearance and so grateful for it. It worked out for us. We had no late fees, though again the interest piled up on it. I recently had a streak of sales and my wife recieved her original hours back and even some OT at the job for about 6 weeks, add the stimulus check and I  happily  sent the mortage company 14 k(plus another 2k for the April)five days ago! Bam caught up! We are still in forebarce until August 1 it did not drop off even though we are all caught up.  This will allow me to make the next few payments late without fees. I believe I will need it after the large payment.

The wife lost the much of her work hours again, but I am holding my own making about 25% more than I did same time last year(still far less than the year before Covid hit). I believe the stimulus program  and the assistance with forebearance was a good thing for people, it was for us anyhow.

Now I just have to make todays May 1 mortgate payment before 30 days are up because I am strapped!

My wife or I will post up how the credit report looks next month and see if this mess effected it at all.

[Mland-EC]

Okay my mortgate company reiterated if was not current by May 1 they are reporting as many months as I am behind as of May 1.  I was zero months behind when the pandemic hit, never had a late before that and was zero months behind when I went into forbearance.  I can't find anything on Google (Mod cut - not here - please reference post #18 upthread with regard to our TOS Guidelines) newest stimulus that changes this May 1 date. My mortgage company told me being  on time when forebearance started only prevented the monthly late status from being reported to the credit agency from the day the forrbearance started until May 1 2021, they repeated that to me 3 days ago. They are not going to report a foreclosure or anything like that. If other mortgage compnaies are doing the same if not caught up by today loads of people that are still in forbearance are going to have a surprise drop in thier credit scores in a month or two, even if they are still in Forbearance.

One thing I noticed is indirectly I believe I was dinged almost every month a couple points due to the mortgate BALANCE being reported, it was going higher and higher. They reported thenew blance wiht teh montly pay due being added ot teh current blance.  The blanace was getting higher even went higher than the  original loan amount. I would get a notice in my credit report stating the balance was not dropping verse the original loan amount(no kidding it was going up!). That was just a commrmt on MY FICO, but I am I am betting the algorithm caught that because there was an unexplainable ding in my credit report of about 1 to 2 points per month during that time. I keep very good track of my CC Cards and I can't think of anything else that could of caused this weird drop, who knows. It wasn't  balances on  my cards making that change. If anything my credit card balances all went down a  tiny bit.  Since we were making far less money and  I couldn't pay my mortage I could not justify buying  crap on my credit cards at all so we actually gained a bit of ground on reducing the total balance owed on all CC.
 
I am so glad I had the chance to get this Covid forbearance and so grateful for it. It worked out for us. We had no late fees, though again the interest piled up on it. I recently had a streak of sales and my wife recieved her original hours back and even some OT at the job for about 6 weeks, add the stimulus check and I  happily  sent the mortage company 14 k(plus another 2k for the April)five days ago! Bam caught up! We are still in forebarce until August 1 it did not drop off even though we are all caught up.  This will allow me to make the next few payments late without fees. I believe I will need it after the large payment.

The wife lost the much of her work hours again, but I am holding my own making about 25% more than I did same time last year(still far less than the year before Covid hit). I believe the stimulus program  and the assistance with forebearance was a good thing for people, it was for us anyhow.

Now I just have to make todays May 1 mortgate payment before 30 days are up because I am strapped!

My wife or I will post up how the credit report looks next month and see if this mess effected it at all.