In this episode of Coffee with Carl, attorney Carl Zoellner goes over some options for working with existing loans amidst the global coronavirus pandemic.
Due to the COVID-19 pandemic and national shutdown, many are experiencing a cash crunch. If you have existing loans, you may be struggling to repay those debts. To mitigate this, it may be a good idea to connect with your lenders to see what kinds of options they have available for deferral.
When working with existing loans, start by looking to your lenders to see if they offer any sort of deferral during this period. These loans may be mortgage payments, student loan payments, or other loan programs out there. Many are offering opportunities to defer payments, and if you’re having difficulty keeping up, this may be the right option for you at this time. Some lenders may even apply deferral automatically, but most will require you to call in and request a deferral from the lender directly.
Personally, I have opted to defer my mortgage and student loans. For my personal residence, my lender is going to defer the loan until September. At that time, I’ll need to call the lender and tell them how I want to repay the deferred payments — either by restacking my loan payments to catch up sooner, or by adding the six months I was in deferral to the end of my mortgage. For me, adding the six months’ worth of payments to the back end of my mortgage works because this home is not my “forever home,” so I have no problem moving the mortgage another six months out on the back end to create a little breathing room. The same is true with my student loans. In fact, I didn’t even have to apply for deferral for my student loans; it happened automatically. I like the ability to be more liquid during this time.
Ultimately, there are options out there for those who are currently living with limited cash and existing loans during this pandemic. Lenders understand the times we’re living in, and it may be the right option for you to work with your lender to come up with a plan that allows you to hold onto more cash at this time.
As always, if you’d like to speak with an experienced and understanding professional about your individual situation, request your complimentary Strategy Session now. On the call, you and a Senior Advisor will discuss your individual facts and circumstances to come up with a plan to enhance your business and make sure you’re structured appropriately, using all the legal tools available to you. You can schedule online or by calling 888.871.8535.
Watch as Carl goes over some options for working with existing loans during this period of COVID-19 pandemic.
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