When You Go Into a Forbearance It’s All Due at the End
Video Transcribed: I am Edward Kelley, a bankruptcy attorney in Oklahoma for Wirth Law Office. Okay, so today we’re going to do a basic overview of Chapter 13 bankruptcy in Oklahoma.
This is coming up a lot because people are getting out of forbearance due to COVID and finding out that they owe all the money that they’ve been held off in forbearance for six to 13 or 14 months, so that can be thousands and thousands of dollars.
And if you’re not able to roll that into some kind of loan at the end of your loan or otherwise make it manageable, and a lot of people I hear from are having trouble with this, then you may need a Chapter 13 to save your house, because you’ll find that suddenly you’re eight to 10 months behind.
What a lot of people don’t understand when you go into a forbearance is technically it’s all due at the end. So, if you’ve gone a year with your $500 mortgage, then you’re going to owe $6,000 on January 1st of the following year. That’s not feasible for a lot of people, especially if they’re been in forbearance. How does Chapter 13 help you do that?
Well, it can force the bank, if you’ve got the money to do it, to let you make up that arrearage over as long, currently, as 72 months. I’m going to do some specific videos on how that works in the next series, so stay tuned.
This is how Chapter 13 can help save your house from foreclosure, from arrearage, and particularly in this case, from problems with end-of-COVID forbearance payments coming due in a big lump sum.