CONSUMER BEWARE THE CONSEQUENCES OF FORBEARANCE

There has been plenty of information about how to make use of forbearance if you need it. Still, there is very little information published about future consequences should you choose that option. This is new, so we are just starting to see what is happening to consumers who have inquired about, or proceeded with the process. We are told forbearance will not negatively impact our credit, that is not entirely true. What we know so far:

1. Your credit report will state that you are in forbearance, and you can be denied a new loan because of this. 
2. If you apply for forbearance, even if you do not take it, it will show on your credit report, and you could be denied a new loan.
3. If you are approved for forbearance but continue to make your payments, you can still be denied a new loan.
4. If you inquire about forbearance, that inquiry is likely to be on your credit report, and you can be denied a new loan.

A forbearance is a valuable option for those having financial difficulty. Still, consumers need to exercise the option with the full knowledge of the resulting impact on their future ability to get a mortgage. As with many things these days, new information is coming out daily, so check regularly for updates.