Because of the COVID-19 crisis:
- My local city council called for a moratorium on evictions AND requested everyone shelter-in-place.
- Then Governor declared a state-wide “Stay Home” order.
- Then President of the United State declared a national emergency.
This brought the economy to a hard stop.
And I thought… here we go again. I’ve seen this type of slow down twice before: 9-11 terrist attacks and 2008 Great Recession.
But this time I’m prepared. This time, I know exactly what NOT to do.
Here’re my top 5 reason you should use my template to ask your bank or lending institution for mortgage forbearance on your home and investment properties.
5 Reasons You Request Mortgage Forbearance Now
1 – So You don’t Repeat the My Mistakes
When the Great Recession hit, I had plenty of reserves that my apartment building produced and I also had plenty of room on my credit cards.
When local economy went sideways my tenants stopped paying…
… I was left to carry the load by myself. So I thought.
So I burned through my reserves and drained all my resources. I was left unable to participate in the fire sales that surrounded me.
I was prideful and stupid. But this time around I now know that interdependence is one of the 7 Laws of Abundance. That’s why I’m engaging my community and marshaling all my resources as I brace for things to come.
2 – So You Don’t Become the Local Buffer of a Global Pandemic
You may need to hear this. Please listen up… This pandemic is not your fault. You need not act like it is!
If you’re a landlord and your tenants aren’t able to pay because they aren’t allowed to go to work, then you’re stuck with all the bills.
You can become the buffer by tapping your business or personal savings but there’s another option.
You could follow this template and get a few mortgage payments postponed.
Your lending institution might even waive the internet related to the postponement.
Asking for forbearance doesn’t make you weak. Not asking, when provisions are there for you, makes you weak.
Some don’t want to ask because doing so might hurt their credit or make them look bad. And to that I say, “that’s exactly why the president declare a national emergency… to help everyone save face and work together.”
3 – So You’re Better Positioned to Help Others
Many people will be financially and emotionally hurt by this crisis.
If you follow my template to ask for forbearance you’ll be better positioned to a) have extra to assist them if needed and b) teach them how to go through the forbearance process for themselves.
4 – So You’re Able to Pay Your Private Money Lenders
In 2008, I was Mr. Self-Sufficient.
I was confident in my HELOC, credit cards, and bank loans. I preferred institutions over individuals.
That’s was until I discovered that institutions stop lending when a crisis hits. I watched in disbelief in 2008 as major institutions received federal assistance, but used it for bonuses and stock buy backs.
It was a slap in the face; a wake up call. I was so naive to think these companies were some how noble. They aren’t.
Since then I’ve lost all faith in banks. Private lenders were my preferred source of funding. Institutional funding is part of my backup plan.
That’s why requested and recieved forbearance on my 8-unit apartment building. I did that to make sure I was staying strong for my private lenders. I need to protect them because in times of turmoil banks stop lending and I need private lenders the most.
Stay tuned, we will soon have a special training on how to work with private lenders. It’s a super important topic. Details to follow.
5 – So You Can Participate in Your Local Economy
Once you get your mortgage postponed, you’ll have a little more breathing room. I am encouraging you to put as much cash as you can in your savings and live as normal.
If you don’t suffer a financial hardship, and you have extra capacity, then you can spend money as normal.
That means you’re able to do your part to keep your local economy moving.
Maybe the entire reason we’re connected is for me to deliver this message at this time.
Let this crisis refine you so you can emerge stronger.
Leave a comment below and tell me how things turned out when you requested forbearance.