Surprised to see additions to my loan principal after forbearance
I used to be in a Covid forbearance program and I am now able to resume payments. The lender sent paperwork and loan modification and I don’t understand why there are escrow payments and a $20k junior lien added to my principal? by dannyboy226 from Atlantic Beach, Florida. May 4th 2022
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,852 contributions
Forbearance means "pause", not forgiveness. You have to make up the payments somehow, somewhere. A common practice is to take any back missed payments and turn them into a new 2nd mortgage (junior lien).
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