Forbearance or not to forbearance?

I spoke to someone in my family the other day, and she mentioned that her bank didn’t tell her that her credit would be affected by a forbearance agreement.

It’s unfortunate that banks are miscommunicating this fact to their borrowers. Some of them are getting a rude awakening that their score dropped 50 points and they can’t refinance.

I spoke with a client last week, and he said that he’s working with a loan modification company who said that they could eliminate his arrears. Whether that’s true or not, who knows. I’m definitely rooting for them to do that for him, but the reality is that most banks are tacking the arrearage onto the loan.

I’ll post more information on this as I gather more research.