ORLANDO, Fla. – Homeowners granted deferred payments because of unemployment linked to COVID-19 would no longer face balloon payments after the forbearance period expired under a new proposal sponsored by Rep.
Darren Soto (D). The Florida District 9 lawmaker told News 6 the current version of the CARES Act provides deferred payments of up to 180 days but still leaves the payment options to the lender. “If you give discretion and make the program too complicated it is almost inevitably going to fail the homeowners,” Soto said Tuesday.
Recent reports have shown many borrowers are concerned that servicers are offering a balloon payment option that would require the entire amount owed for the forbearance period to be paid at once.