Massachusetts homeowners who received a 180 day forbearance from their mortgage company will likely see a significant increase in their monthly bill when payments resume.
Why?
First, all missed payments will be added to the principal of your loan; interest will be compounded.
Second, you will need to refund your escrow account for homeowners insurance and property taxes.
Most homeowners pay their insurance and property taxes through an escrow account created by their mortgage company. A portion of each monthly mortgage payment is used to fund this account.
Not surprisingly, insurance companies and local governments still demand payment whether or not your loan is in forbearance.
Your mortgage company will cover these expenses during the forbearance period, but they will likely recover these funds from you as quickly as they can when your forbearance ends.
If you need legal help, please email me at justin@jrmccarthy.com
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