Mortgage Delinquencies of At least 90 Days Rise To Highest Level In 10 Years

[melm00se]

11. The answer is not clear cut

It depends upon the deferral agreement.

the most common ones that I have seen (I used to work in the business) are:

Tacking the payment onto the end of the loan

So a 360 month mortgage with a 6 month deferral becomes a 366 month mortgage with 360 payments.

Deferrals that mimic a Chapter 13 payment plan

Take the deferred months, divide the deferred dollar amount by an agreed upon number (like 24) and the mortgage payment is increased by that amount for a specified period of time.

IOW, 6 months is deferred. Mortgage payment is $1000/month so $6000 is deferred. The $6000 is then spread over a 24 month period. $6000/24 = $250. The mortgage payment goes up to $1250 for the 24 months after the end of the deferral window and then after that period reverts back to the $1000. (Please note that I chose these dollars and terms to make the math easy).

There are a myriad of others that pop up from time to time.

Despite what a lot of folks believe, banks do not want to foreclose. It is a colossal, time consuming, not to mention expensive PITA.