August 27, 2020


By Timothy Stull (

As a result of the Covid 19 Pandemic, millions of homeowners have been offered forbearance plans by their mortgage servicers.  The thought of “no payments” seemed very appealing to many up front, but the hidden long term agenda is very tricky.  Ultimately a forbearance plan is nothing more than “letting the bills” pile up….then what?  Eventually is you ask a home owner for 10 payments down the road, you may as well be asking 10 million dollars….the money just isn’t there.  Also remember that many home owners that entered into forbearance had problems prior to the Covid 19 pandemic…so that delinquency activity is baked into the overall debt fiasco.  Most individuals feel that recapitalization or moving past due payments to the end of the loan is a guarantee in this process….that is simply 100% false.  The same notions existed in during the last financial crisis and many home owners learned the hard way.  Remember that during the last financial crisis, property values were dropping sharply….this time around we have a booming real estate market.  This adds even more pressure to the situation, since mortgage servicers are motivated to foreclose in order to drive up fees….and this time around they won’t be stuck a loss.  Full loan modifications will be required to recapitalize past due payments.  If the last financial crisis taught us anything, it is that mortgage servicers are truly uncooperative during the loan modification process.  The process itself is a tangled mess!  Arguments, data, documents, tedious work and stressful conversations are the daily routine.  Mortgage servicers have a very hard time staffing to work through process….the turnover rate with the job market is incredible.  Simply put, the process is big time fight.  If you are unable to counter punch during this process, you are destined for failure.  Whether you plan on filing solo or need extra help, we are here for you.  Our firm gives out 100% free advice simply by calling 877.297.7011, emailing or texting to 312.213.0884.

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