MORTGAGE LOAN PAYMENT PROGRAM
|Q:||How much of my payment can I not pay?|
|A:||Community Credit Union recommends that you pay as much as you can. One suggestion would be to allocate about 40% of your monthly income to making loan payments, including your Community Credit Union loan payment.
For the 90-day forbearance period, you may reduce your Community Credit Union loan payment as low as you need to.
|Q:||If I don’t make my payments, will that affect my credit score?|
|A:||If you apply for the MLPP before the payment becomes due, and your Application is approved, Community Credit Union will not report the payment as delinquent to the national credit bureaus, for as long as your loan is under the MLPP.|
|Q:||Will this payment forbearance cost me anything?|
|A:||No, Community Credit Union does not charge a fee to analyze, approve or process your application for the payment forbearance.|
|Q:||Will everyone be approved for the payment forbearance?|
|A:||We anticipate most of our borrowers who have been affected by the pandemic will be approved. However, a borrower who was late on his loan by more than 30 days on March 13, 2020 (the date that a national disaster was proclaimed by the Federal government), will not qualify for the payment deferral. We encourage everyone to apply who has been financially affected by the pandemic.|
|Q:||How long will it take for Community Credit Union to process and approve my application?|
|A:||Community Credit Union is dedicating all available resources and efforts to providing our borrowers with a timely and professional response to their application. However, because of the large numbers of expected applications, we may experience a backlog and some delays in addressing every application. To be fair to all our members, we will process each application in the order in which it was received. We encourage you to apply via email.|
|Q:||What will happen to the payments I didn’t make?|
|A:||For the vast majority of Community Credit Union loans, the principal portion of your loan will be added to the end of your loan. If someday you sell your home or refinance the existing mortgage with a new mortgage, the payoff of the existing loan will reflect a higher principal balance because of the payments you didn’t make. That will also be true for loans that are not mortgages, like business loans, home improvement loans, automobile loans, and personal loans.
The interest on your loan will continue to accrue during the forbearance period.
Before that period ends, we will contact you to set up a new payment plan. In some cases, your payment may increase to catch up on property taxes and insurance premiums Community Credit Union paid on your behalf during the forbearance period. In other cases, we will extend the term of your loan with extra payments at the end. For some loans (especially first mortgages with interest rates fixed for 20 to 30 years), investor rules may require a loan modification that will increase your payment to catch up on principal and interest not collected during the forbearance period.
|Q:||What happens at the end of the 90-day forbearance period?|
|A:||We will contact you to discuss your financial circumstances. Based on the information you provide, the type of loan you have with Community Credit Union, and guidance from Federal agencies and regulators, we will work with you to develop a payment plan.|
|Q:||What documentation will I need to provide for the application?|
|A:||— Please start with a brief explanation of your financial hardship and its cause; a short note or email is sufficient.
— Complete and sign the Mortgage Loan Payment Application, which you can find here. Follow the guidelines on page 2 of the Application for the type of documentation we will need from you.
— Please send the Application and your brief explanation:
— By email to Mortgagedepartment@myccu.org
— By mail to Community Credit Union, Mortgage Department, 32 Central Street Peabody, MA 01960.
|Q:||If I can continue making my loan payments on time, either from income or from assets or some other means, should I continue paying? Is there any advantage or harm in applying for the payment forbearance if I don’t need to?|
|A:||Community Credit Union recommends that all borrowers who can continue making their payments on time continue to do so. Payment forbearance is designed to provide relief to borrowers who are experiencing financial hardship from the pandemic, but it is not payment forgiveness. The payment will still need to be made, but later on when borrowers are back to work and able to make the payments. During the forbearance period, interest will continue to accrue on the loan, and property taxes or insurance premiums that Community Credit Union pays on your behalf will need to be paid back later. So, loans with payment forbearance will take longer to pay off, or will have higher pay-off amounts later, or will have higher payments after the forbearance period. If you are not facing financial hardship, please continue making your payments on time. That will also allow us to dedicate our efforts to our members who are facing financial hardship.
On the other hand, if making the loan payments creates a financial hardship because of COVID-19, we encourage you to apply. Applying and receiving the benefit of the payment forbearance will not harm your credit or your ability to borrow later and will not incur late fees.
|Q:||What can I do to help the process?|
|A:||We appreciate the cooperation of all our members; we know that this may be a stressful time for you, and we want to help. Here are some things you can do to help us:
— If you have not been impacted financially by the pandemic, we ask that you not apply, so we can devote our resources to members in financial hardship. If you face hardships later, we will have this program available for you then.
— Please submit applications completed fully and submitted with the required documentation through email or mail. Due to the continuing health crisis, we cannot meet in person with applicants. If you encounter difficulty completing the application, please consider enlisting a technology-savvy relative or neighbor whom you trust to help you complete the application.
— If a Community Credit Union employee asks you for documentation, please provide it as quickly and completely as you can.
— When interacting with our staff, please be patient and courteous as we work to respond to you as quickly as possible.