Posted by Blake Montgomery on Apr 15, 2020 4:05:02 PM
Blake Montgomery

Watch Scott and Alyson to learn more










From the April KATV interview with Scott McElmurry and Alyson Courtney

No Headphones.  No Problem.  See Below for Transcript.

From the station that's on your side

this is channel 7 news good morning

Arkansas you may have heard about the

mortgage relief options during the

crisis but should you use them and

should they be your first stop we'll

answer those questions coming up after

the break


welcome back during this truly

unprecedented time of a global pandemic

many have lost their jobs and income the

last thing you should be worried about

is losing your house too if you have a

mortgage you may be crunching the

numbers to see how long you can make

your mortgage payments there are many

resources and tips for homeowners during

the Cova 19 crisis here to discuss the

homeowners options

Scott McElmurry the President

and CEO of Bank of Little Rock Mortgage

so what Scott these are really trying

times for a lot of people a lot of

uncertainty a lot of people questioning

their finances where will I be tomorrow

would be like in a month or two six

months down the road for you guys I'm

sure you're getting a whole lot of

questions from a lot of your clients we

are yeah so much of it surrounds

obviously like you said what's gonna

happen in the future and so many people

are affected not just financially but

obviously in many other ways and so I

guess first off thanks to the first

responders right because they're just on

the front lines and and we just

appreciate like all that they're doing

but when it comes to mortgage finance

the cares Act that Congress passed gives

some relief to people who have been

affected by the by cope in nineteen

financially and it allows for something

called forbearance now you've got to be

careful about that because there's

really no question about whether they

can get it now it's only on government

loans so that means anything that was an

FHA or a VA or maybe a rural development

or one owned by Fannie Mae or Freddie

Mac those get a six month forbearance

agreement basically by just attesting

that you've been affected by koban 19

now I caution people on taking that

because it's not a forgiveness

forbearance basically is in the context

of the carers Act it's six months or up

to six months that you can essentially

defer payments what then happens is in

other words you don't have to make a

payment for six months or up to six

months or you can negotiate a partial

payment or something along those lines

but after six months there's a reckoning

essentially you have to basically

reinstate the mortgage and that means

bring the the deferred payments current

or come up with some other to forego

range Minh

let's assume your payments a thousand

dollars and you take the six month

deferment you have six thousand dollars

that still now do and you have to make

payment at some point or on some and and

the reinstatement means that you have to

pay it basically after this exponents

register check for six thousand dollars

if you can't do that then you go into

other options of of a work out situation

of how to get that back as well as start

making your payments again now the cares

Act allows for after six months if you

still can't still effected you get an

automatic an additional six months but

again you're just adding to the problem

you're pushing the problem down the road

because it's not forgiving it is just

deferred and it's not a situation where

oh well we'll just tack it on to the end

of the loan and you just you added six

months or 12 months to your loan it's a

matter of we have now again in my

example up to twelve thousand dollars

that we now have to get back in a in a

quicker period of time so if it's a year

you've just added made potentially a

thousand dollars to you monthly house

payment there's got what's your advice

to people who may be suffering from a

loss of of income right now and worried

about that mortgage what should they do

well the first thing they need to do is

contact their service or meaning who

they're making their payments to look at

their mortgage statement determine if

they can a lot of times the statement

will tell you if it's an FHA loan or a

VA loan or some type of loan if it's a

government loan the first thing I do

whether it is or not is contact their

servicer and just understand what their

options would be and then determine you

know making a budget can you continue to

make your mortgage payment if you can

that's the best advice I can give is to

continue to make that payment if you

need payment relief you certainly want

to discuss your options and and

understanding that at some point you're

going to have to pay this down the road

so you want to make sure that you're not

just making it a lot easier on yourself

now to have pain in the future and we've

heard the the stimulus packages that are

being looked at and that are actually

coming along the way so if people can

can hold off and wait and get some of

that and not do some of the things that

could end up costing them more in the

long run then that would be your advice

right now absolutely to make the payment

continue to make the payment this has

really made for people who maybe had a

total job loss or someone who obviously

the sitting on a restaurant right now

obviously we know that they're

struggling and so they need some kind of

financial relief but it really should be

a last-ditch effort or or last kind of

option for them and then it's there for

them to utilize and then work out down

the road and that's what it's made for

it's for a short-term or temporary

disaster relief

prior to Covid this this was an option

when there were short-term disasters

again for things like Katrina or or

other you know type of weather-related

disasters this program was in place it's

just been enhanced now because of Kovac

doesn't mean you necessarily need to use

it or should use it you use money for

different different things you still

need to try to make that mortgage

payment how has office changed for you

guys Scott there I'm sure you're still

taking calls and maybe some of you guys

working from home well you're just if

you want to say there's a silver lining

or positive impact I've covered it's

really driven interest rates down

substantially and so we're extremely

busy refinancing a lot of people's loans

and that's the other thing when it comes

to forbearance if you go into

forbearance it really stops a lot of

your options going forward until you get

out of that forbearance in other words

if you're in forbearance now I cannot

refinance your loan or potentially if

you sold the house and there was some

forgiveness then you get into a distant

situation where you may not be able to

finance the new home that you're buying

so again it's it's only meant for people

who really really need it and it could

cause you more problems than than what

it solves if you have the ability to

continue to make your payments but you

know we're like everybody else we're

social distancing where we're doing a

lot of stuff remotely and so you know

it's it's been a challenge certainly

because the efficiencies that we've

always enjoyed maybe are a little less

but it's also made of stronger I think

and I think as a country will be

stronger because it's made us do some

things that were available to us that we

just put off because we didn't need to

and so you know we've got a lot of

remote workers and we're pushing people

home but but we're still able to

continue on and hopefully others will be

as well we you know get this thing

behind us quickly thank you so much for

your advice a lot of questions you've

answered today that I know a lot of our

viewers have so we appreciate your time

absolutely Thanks


Topics: COVID19 Loan Servicer CARES Act Forbearance