Mortgage Payment Relief

A forbearance plan is a temporary suspension of your monthly mortgage payments intended to allow you time and flexibility to manage the financial challenges you may face after a hardship. A forbearance plan is not forgiveness of any portion of the debt, and interest will be due on the missed payments.

A Borrower must have one or more of the eligible hardships identified below in order to be eligible for certain relief or workout options.

• Unemployment
• Reduction of income caused by circumstances outside the Borrower’s control
• Increase in housing expenses caused by circumstances outside the Borrower’s control

A forbearance plan may be helpful for you if you need a temporary breather from making your monthly mortgage payments until you get back on your feet after your hardship. However, we are not able to tell you if a forbearance plan is right for you. If you are not sure, we encourage you to speak with your financial advisor or attorney before making that decision.

No, once the forbearance plan has expired, the full amount that you did not pay during the term of the forbearance plan will be immediately due.

At the end of the forbearance plan, all the amounts you have not paid will be immediately due, in addition to your regular monthly mortgage payment. However, at that time we have several permanent solutions to help get you back on track with your mortgage payments, depending on the type of mortgage you have.

This will depend on the type of mortgage you have. We are focused on doing all we can to help our members. We cannot guarantee that you will be eligible or approved for any of the options described below; in which case you would be required to pay the full amount of missed payments at the end of the forbearance plan. However, the options that could be available include:

• Lump-Sum Payment: You can choose to pay the deferred total as one lump-sum at the end of the forbearance period.  
• Repayment Plan: You can choose to make partial payments to make up for the number of months that have been placed in forbearance. We will work with you to determine the partial payment amounts, not to exceed 12 months. The partial payment will be an addition to your regular monthly mortgage payment.  
• Modification: The term will be extended in monthly increments, not to exceed a term of 480 months from the Modification Effective Date, until the modified principal and interest payment is equal to the existing contractual principal and interest payment on the Mortgage. The modified principal and interest payment may not be greater than the existing contractual principal and interest payment. If necessary, MIDFLORIDA Credit Union must extend the term one additional month to cause the principal and interest payment to fall just below the existing contractual principal and interest payment on the Mortgage. The maturity date of your mortgage will also be extended to the new amortized terms of the modification. You will enter a three month Trial Period Plan, which allows both you and MIDFLORIDA time to ensure that the payment is sustainable. Once you have made all Trial Period Plan payments in the month which they are due, and you return your signed modification agreement, your loan will then be permanently modified to the new terms. In order to qualify for the modification we must obtain clear title of the property and all parties of title must agree and sign the modification agreement.  
• Deferment (if the mortgage qualifies): Principal and interest payments will be deferred and will be due as a single payment upon maturity of the Note.

Clear title means the property is free and clear of any encumbrances (ie. Judgments, Liens, Notice of Commencement, Second Mortgage). If you have a second mortgage or a lien against the property, you do not have a clear title. It will be your responsibility to obtain clear title prior to moving forward with a modification, upon approval. This will include obtaining a subordination document from your second mortgage lender.

Escrow payments if any, are not deferred and the missed payments will result in an escrow shortage, which will affect the amount of subsequent escrow payments.

You may apply for any of these options at the end of the new forbearance plan, but we cannot guarantee you will be approved for any of the available options.

CREDIT REPORTING AGENCIES MAY TREAT A FORBEARANCE ( OR LACK OF REPORTING) AS A NEGATIVE FACTOR, AND THAT WE HAVE NO CONTROL OVER THE EFFECT OF THE FORBEARANCE ON YOUR CREDIT SCORE. 

At your request and attestation to a financial hardship caused by declared natural disaster, you can be approved for an initial forbearance plan up to 180 days. Please call us one month prior to the end of your forbearance plan so we can determine what options are available to you. 

Your AutoPay will be cancelled. Once your forbearance period, repayment plan, or modification program ends, please call us so that we can help you get Auto Pay set up.

While you are on a forbearance plan, you are not making the full monthly payments you originally promised to make, and thus you are delinquent. We are required by law to send you your billing statement and certain notices regarding your past due status. However, no late charges will occur during the forbearance plan period, but you will be delinquent until you bring the account up-to-date. If you default on the forbearance agreement or, one of the payment options following the forbearance late charge accrual will recommence from the date the borrower defaulted on the agreement.

Yes, you can always cancel the forbearance plan before its scheduled end date. Just remember that when the forbearance plan ends, you will be immediately responsible for any payments you missed during the forbearance plan.

Yes, if you are impacted by a hardship or a disaster you may also receive help from:  

• U.S. Department of Housing and Urban Development (HUD)  
• Federal Emergency Management Agency (FEMA)  
• American Red Cross: 1-800-733-2767   

If you still have questions or would like to proceed with the forbearance, we’re here to help. Please call MIDFLORIDA Mortgage Servicing Department at (863) 688-8443 and select option 5 or by email [email protected].