How to Keep Your Home When You’re Going on Strike

If you’re a homeowner and you’re faced with unusual circumstances you are a union worker and your union goes on strike and therefore you are not receiving any compensation from your employer during that strike. It’s possible that the lender who are services of your home loan will agree to and allow you to enter into a forebearance agreement.

What does that mean? Typically a forebearance agreement is it defers all your payments for a period of time? And then at some point you need to repay those payments. And here’s the question you have to ask the servicer or lender. Will I have to repay all those payments in one lump sum at the end of the forbearance period?

Or alternatively, will you put these payments on the back end as a balloon payment? Because realistically, if you, let’s say hypothetically, you have six payments that are, they put in forbearance. let’s say your payments are $2,000 a month, that’s $12,000. And then you come out of the strike, out of the forbearance period, and then you’re expecting not only to start making your monthly payments, but come up with that entire $12,000.

It’s not really realistic that you’re going to be able to do that. And therefore, you don’t want to put yourself in a situation where by entering this agreement, you ultimately are going to possibly have a foreclosure and what we want to do is make sure when you do discuss with the service or a lender, make sure that those payments are going to be put on the back end.

Make sure that you get something in writing to protect you and your family because we’ve seen numerous times where the banks Allow you to enter a forbearance agreement and then at the end of the forbearance, they expect you to come up with all those payments up front