ODESSA, Fla. — A couple who own a home in Odessa looked into taking a three month forbearance on their mortgage when the coronavirus pandemic hit their pocketbook hard but were worried the bank will want the lump sum in the fourth month.
- Hard-hit homeowners have mortgage options during coronavirus crisis
- SunTrust, now known as Truist, offers options to homeowners
- Bank of America, Wells Fargo and Chase all said their customers will have forbearance repayment options
- CORONAVIRUS LIVE UPDATES: In the Tampa Bay area
"If I'm having trouble paying it now," said homeowner Patrick Craig, 52. "How in four months is it going to be any better?"
Patrick and his wife, Diane Craig, 49, own Affordable Air Solutions in Tampa and said their business dropped 43 percent in the first quarter of this year, compared to 2019. That's why the Craigs said they immediately called their bank and inquired about a three month forbearance on their home mortgage loan.
"I was shocked to find out when you call your mortgage provider, which in my case it's SunTrust, that they will suspend payments for three months but you have to pay it back in lump sum in the fourth month, along with your fourth month payment," said Diane. "That's just kicking the can down the road and no one's going to be able to meet those standards."
The Craigs said they have a 30-year fixed loan on their home with a 3.38-percent interest rate. They're not interested in refinancing or loan modifications but would prefer some other forbearance repayment options.
"Defer it until the end of the loan or maybe payments spread out on that three month lump sum," said Diane. "So, that it's attainable and doable for all of us out here."
SunTrust Bank, which now goes by the name Truist Bank, merged with BB&T last year.
The vice president of corporate communications, David White, said they do not want customers to worry about repaying the forbearance in a lump sum.
"We recognize not all clients may be able to pay all of the suspended payments in a lump sum at the end of a forbearance period," White stated. "We will work with clients before the end of their forbearance to explore repayment options available for their individual loan product and circumstances, including loan modifications."
White said generally there are three options that may exist to payback the forbearance: pay the lump sum, pay over time or pay at the end. If customers choose to pay over time, the forbearance will be spread out over 12 months. Those who choose to pay at the end, will see the forbearance amount tacked onto the end of their loan.
That's exactly the kind of relief the Craigs were hoping to find.
Officials at Bank of America, Wells Fargo and Chase all said their customers will have forbearance repayment options similar to Truist for those who qualify.