Hello, everyone. Thank you so much for joining us today on “This needs to be said”. We’re joined again by our friend, attorney Peter Daigle, who will be Peter in just a few seconds. He’s going to give us an update on loan modifications. Last time we talked with you, Peter, we talked about, people really getting ready to have to face a mortgage, their mortgage coming through. So are we connecting with that or what do you have?
I was just going to give you an update on where we were since the last time we spoke on what’s happening in the mortgage modification world. And, this is information that you can use, you know, as relates to your own issues. If you, if you’re even one month late, any mortgage, this could help you. So,
Okay. Well, I got my pen and paper out. I know that people are thinking about it. In fact, me and my husband was just talking today and it wasn’t about loan modifications, but it was just how much we thought we didn’t do because we chose not to forgetting that last year was the pandemic. And I keep telling him we didn’t do that because we couldn’t go outside. Remember. So I think that trying to get back into a normal routine, of everything, paying our bills, getting back out, being in the sun, getting in shape, whatever we were not allowed to do freely last year, it’s, it’s about to happen now, like freely pay your bills and free to go back to work. And all of that, you know, is still being worked out. So I think that this conversation about people having to go back and, you know, look at how am I going to solve this problem now that we’re at the end of the pandemic, still trying to get back to our, our new normal or get to a new normal, yeah, I think what you have is what we need in this moment, because it’s going to feel all of a sudden, but it’s not, we’ve been in.
Well said, well said, so let me, let me sort of give you a little bit of a brief review of what we talked about last time and sort of segue into the what’s new. So, you know, in March of 2020, when the pandemic hit, banks automatically flipped over onto this forbearance situation, what we call a forbearance agreement, where they say folks, as, you know, as long as the pandemic here, we’re going to allow you to not have to pay your mortgage under what’s called a forbearance agreement. And, and the forbearance agreement that was an exit by the different lenders was sort of run, at the same time as the moratorium on foreclosures. So the moratorium on foreclosures was instituted against government back loans, which has not all of the loans, by the way. It’s not every loan that’s out there, but a lot of the banks said, we’re going to just follow the government’s moratorium and we’re not going to go lock a foreclose on people.
So those individuals that actually spoke to the lenders, they put them into what’s called a forbearance agreement, which was a basically said, listen, we’re good on you not paying your mortgage until the pandemic’s over. And then at the end of it, I’ll give us a call and figure out how to get back on track. So hopefully, they continued, the moratorium date continuously. And, last time we spoke, I believe the moratorium date was as of June 30th and they’ve extended one month. So it’s now July 31st is when the moratorium ends and there’s no sign that they’re going to extend it any further. what does that mean What that means is that if you are currently under a forbearance agreement that I just spoke about, or you’ve not bothered to talk to the bank and get an actual agreement with them, you need to contact your bank to find out how to modify your loan.
So that, you’re no longer delinquent, because once the moratorium, it comes off at the end of July, banks have the ability to foreclose on you. Okay and so there’s two ways to modify your loan. if it’s, if you have been in good standing with the bank all along, and this was just sort of a temporary, blip as a result of the pandemic, the bank, what the banks generally doing now is just adding the, mortgage arrears. So let’s say you missed 12 payments. So what the banks will do now is they’ll add 12 payments till the end of your loan. So if your loan is scheduled to be paid off, let’s say in year used to be 2035, and that will be paid off in the year 2036.
So 12 payments would be added to them. Okay. So what happens then is in your now the next payment you had, you will be current. All the missing payments would just be paid at a later, at a later date. Okay. so, the banks are doing these things routinely, most of their customers. Okay. Now, if, if for some reason you were delinquent prior, pre COVID and they’re not gonna allow you to, to do a modification, which is just essentially added to the back end of the loan, you are still able to do a regular what’s called loan modification, which was the modifications that were done years ago, pre COVID. Okay. We have this, an application to fill out and you send your pay stubs and your tax returns and your bank statements and all those information. So it’s a little bit more involved on the loan modifications that way, but that is, that would be a plan B if the banks do not lie to do the, basically no doc, a document, a loan modification, which again, as I explained a second ago, it’s just at the back end of the loan.
Now, if you go through the full loan modification process, it’s, you know, there’s no guarantee that you’re going to get it, you know, unlike the other type of modification. So you have to make sure that your, your eyes, Dottie T’s meaning that you meet the ratios and, you know, you have the ability to serve as the long haul forward. You’re not going to get a loan modification, though, if you’re unemployed, and you have no ability to make those payments, they’re only going to modify under the second part of the modification, which means they’re going to see your pay stubs and your banking information. If you have the ability to pay going forward, they’re not going to give you the regular full blown loan modification. If you don’t have the ability to pay, cause they don’t want to get stuck with a loan.
So if you can show that you’re gonna afford it, they’re willing to help you. Okay. So it’s sort of going back to the pre COVID type approvals on getting loan, modifications approved. So, but either way you need to contact your bank. If you don’t necessarily, we don’t contact your bank by the end of, July then they can foreclose on you. Okay. Now, every bank is different, so they might have a policy where they, you know, notify you a letter or they call you whatever. I mean, you really need to check with your bank of your loan servicer, but, but just bear in mind, they have the ability legal ability to foreclose on you after that date. Okay. So you, if this is something that really needs to do, like in, you know, like, like this week, you know, I mean leaving next week, you’re really pushing it because when coming to the end, so what I’m hearing though, is banks are feeling fairly willing to assist, their customers. So, you don’t need it. You don’t need to be afraid when you call, you don’t need to call, you know, fearing that they’re going to say no to you. They’re going to expect me to call as they’re expecting lots of other people. So, you’re in a you’re in an arena with a lots of folks it’s and you’re not out by yourself, so, okay. That is good news. So that’s sort of left sort of the lay of the land going forward here.
So while there is more time, not much time, I definitely will get this episode out so that people can hear it straight away. Like I said, before we went live, I re aired your episode because I knew June 30th was the date. And I had had an idea that there would be an X, B, and X tension, I must say, yeah, be an extension. I was like, am I saying it the right word so I aired it again. And then we come on today and you’re saying. Hey, we got to get an update. So I’m glad I did that just on yesterday and so this one will ride the wave of that one to get people moving. This is a real concern, real conversation, not necessarily something that you may feel comfortable with, sharing with a friend. And a lot of times our friends don’t know, I say 99% of the time our friends don’t know how to help us.
They can listen. So as attorney Peter is sharing with us on today, we have two more weeks from the date of this conversation, basically that you should be positioning yourself to be thinking about paying your mortgage again. However, the things that he’s mentioned, if you were behind before COVID, your situation will be slightly different from the example he’s given here. You, you can call your, your mortgage holder, your bank, you should call them. And he’s saying not to be afraid. That is something we’ve talked about before, like the emotional part of assembling our funding to theater. And this is another one of those times because they can just the phone to call someone and ask them for help is not that simple all the time. So this time is because people are expecting you to be calling. Other people are going to be calling with similar problems like yours.
I don’t know if that makes people feel better. It would make me feel better that I’m not in this by myself. This was a global situation. We are all affected some kind of way. So no room for you to be embarrassed this time, because we’re all going through it. I just hear good news, Peter, that I just, you know, I just hear good news. I hear an opportunity for people to be able to reset themselves and also want to say this. I know that many times people feel like, oh, the government isn’t here to help, you know, the regular person and this past year, if it never happens again in my lifetime, I can’t say that again. there are other times I’ve seen the government pull through, to help when we didn’t even really know, you know, why do we need something stimulated
Or why, why do we need, you know, this kind of support even down to cell phones, I just noticed the other day, if any of the people who are listening, assurance wireless, if you are EBT card holder or you receive Medicaid or Medicare or any public assistance, reach out to that site and make sure that your household has a cell phone and it is including the emergency broadcasting, this to make this time. So you wouldn’t know that if you normally had a cell phone and you’re paying a bill, everyone has been affected. So your cellphone, your mortgage, your rent, your car notes, everything is being affected and Peter’s here to help you, navigate it without having to be ashamed of, without feeling nervous without, gosh, what would we, what would be the normal feelings You know, regret, guilt this time, you is not your fault. It’s not your fault and we’re all in it together. And I’m gonna say it one more time. It’s not your fault. And we’re all in it together. I just hear good news theater.
Yeah. One last thing to see, you know, they’ve really streamlined the process. So when you do call them, they’re going to be expecting you and they’re going to have a process that’s fairly, streamlined. Okay. It’s the best word that I can do. So it’s not like you’re calling up with some unique situation. They’re going to be expecting you. Okay. I think you’re going to be well welcomed with open arms and are going to really be, you know, happy that, that you know, that this has been a, this a solution for you. So again, as you said, Katherine, don’t fear just, just make that phone call and, and because you have a lot to lose and that’s your home. So yeah, it’s just really, it’s really important that you, that you, you sort of get right on
It and we’re here to support you. And Peter, before we get out of here, he’s going to share with you how to get in touch with him when we’re sharing the information on the show. One it’s because it’s a needed topic. It doesn’t mean it’s one size fits everyone. because it doesn’t, but the thing is there’s help for all sizes of situations. And today we’re talking about your mortgage and making sure that you keep a roof over your head because affordable housing is a catchphrase right now, and people aren’t able to afford to find a place to stay. So right now it’s easier for you to keep where you are than it is to find a new place. So if you live in a town where there the tent city, then you see the problem. I’m not trying to scare anyone. I’m just letting you know that you have a something right now that you could save and don’t hesitate to make a phone call to your bank, to find out what help can you receive. That would be the question I would ask, call in, Hey, what help can I receive What can be done for my situation They’ll know more specifically what you need, because there’ll be looking at your loan and what your agreement was and what your status was before last year. So just ask them what help can I receive and do that before the end of this month of July 30th. I think you said Peter was the deadline.
Well, I think the 31 days in July, right so the last 30 days.
Okay, the very last day. Okay. So July 31st, we do not suggest that you wait until the 31st, but that’s when the cutoff will be. So go ahead and find out what, what help you can get Peter, tell people how to get in touch with you outside of this needs to be said. Sure.
Thanks Katherine. So you can reach me by 508-771-7444 or at daiglelawoffice.com, D A I G L E law office.com. You can reach me on the web, but either way, feel free to reach out to me, ask me questions if you’d like to follow up with me on what I said today, and we had to give some advice.
Okay. Thank you so much, Peter. And we will see you again next month. Okay, Katherine, thank you so much. Oh, I know.