Mortgage Forbearance and Post-Forbearance

A forbearance plan is a temporary suspension of your monthly mortgage payments. It is intended to allow you time and flexibility to manage the financial challenges you and your loved ones may be facing as a result of COVID-19. A forbearance plan is not forgiveness of any portion of the debt, and interest will continue to accrue on the missed payments. Please note: At the end of your forbearance plan, the full amount you did not pay during the temporary suspension will immediately be due. However, if that presents additional hardship, we can work with you on alternative options that may be available.

If you have been impacted by COVID-19, either financially or otherwise, you may qualify for a 90-day forbearance plan.

No. You will not automatically receive a forbearance plan, so it’s important that you contact a VyStar representative to initiate the process. You can also request a mortgage forbearance by clicking on the attached link.

A forbearance plan may be helpful for you if you need a temporary breather from making your monthly mortgage payments. We are unable to tell you if a forbearance plan is right for you without speaking to you about your situation, so we encourage you to speak with our VyStar Hardship department to address any questions you may have to make the best decision for you and your family. The VyStar Hardship department can be reached via e-mail at mortgagehardshipprocessingunit@vystarcu.org

We are required by law to send you a billing statement every 30 days.

VyStar is committed to supporting our members and the communities we serve. We are actively monitoring the impact caused by COVID-19 and will evaluate our relief efforts as necessary.

VyStar wants to help our members regain their financial footing. As your 90-day mortgage forbearance period comes to an end, a Mortgage Servicing representative will reach out to you to discuss the options listed below.

This typically occurs 30 days before the end of your forbearance period. However, should you need to contact us sooner, please email the VyStar Hardship department at mortgagehardshipprocessingunit@vystarcu.org.

Depending on your situation, we will work with you to determine the best option to bring your account current. Those options could include:

• Full repayment: Homeowners have the option to immediately reinstate their loan, which means they can catch up on all missed payments and past-due escrows in a single payment, if it’s a viable option. If a homeowner chooses to reinstate their loan, they can continue to pay their mortgage under the original terms that were agreed upon before they received forbearance.

 

• Short-term repayment plans: Homeowners can gradually catch up on the past-due amount over an agreed-upon time frame (maximum of 12 months). A portion of the past-due amounts must be paid in addition to their current monthly mortgage payments. After completing their repayment plan, they can continue paying their mortgage under the original terms that were agreed upon before they received forbearance.

 

• Loan modification: The original terms of the loan are changed in order to address the homeowner’s ongoing hardship and make their monthly payments more manageable. 
• Modifications could include: 
  • Extension of the loan term.
  • A higher loan balance, if past due amounts and fees and costs are added to the unpaid principal balance.
  • Re-amortization with principle, interest and escrows, if applicable, added to the loan balance.