Mortgage Loan Payment Deferment

Are you struggling to pay bills during the COVID-19 outbreak?  Yakima Federal Savings and Loan wants you to know we understand.  To soften the blow of lost income from layoffs and business closures, we are offering up to three months mortgage forbearance to eligible borrowers.

The forbearance will add length to the end of the loan, but will not change the monthly payment.  After the crisis is over, you may want to make a lump-sum principal payment or make additional payments to principal each month to bring the loan end-date back in line with your original agreement at your discretion.

If you have any questions about your loan or would like to discuss your situation with loan department staff, please reach out to your local branch.

Here is some more information about a deferment.

Deferment, also called forbearance, can help give you time to get back on your feet during short-term financial difficulty.

• Temporarily suspends or reduces your regular mortgage payment.
• Assists homeowners with short-term challenges.
• Gives you an active role in the process
• May reduce negative credit impact in the future.
• Helps you avoid a foreclosure sale and move forward sooner.

How it works:

A deferment allows your lender to suspend or reduce your monthly payments for a set time period. Your lender decides how long the deferment period will be, how much your reduced payments will be, and how you’ll pay the deferred amount. Once the deferment period ends, you can pay back the deferment amount by making 1 lump-sum payment or by adding the monthly payments to the end of your mortgage term.

Yakima Federal Deferment Plan:
At the end of the forbearance period, the payment amounts (interest and escrows) that were suspended or reduced during the forbearance period accrue and will be added to your mortgage amount. This will extend your loan term, but allow you to maintain your existing principal and interest payment amount. Your escrow portion of your payment could adjust like normal during your annual escrow analysis during the deferment period.

Making a lump sum principal payment, or making additional payments to principal each month, will help to get you back on track to your original loan term.

How your credit may be affected:
We won’t report a past-due status for your account to the credit reporting agencies during the deferment period.

More good information can be found at the Consumer Finance Protection Bureau:
https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/