Homeowner Hardship Relief for Coronavirus
KeyBank offers three month short-term forbearance plan for mortgages, home equity loans and home equity lines of credit for clients experiencing hardship related to coronavirus.
For homeowners experiencing a hardship related to COVID-19 on a mortgage or home equity product, a three (3) month short-term payment deferral (known as a forbearance) allows you to temporarily suspend your payment(s), but requires paying all the suspended payment(s) back in one lump sum at the end of the forbearance period along with resuming your regular payment. Please note that the forbearance does not stop interest from accruing.
We recognize this may be a large financial burden and have several options available if the hardship continues after the forbearance period. KeyBank will work with you to reevaluate your circumstances and find an option to assist, some of which include:
- Continued forbearance. If needed, you may be eligible for an additional three (3) month payment deferral.
- Lump sum payment. If you can afford it, paying back the amount owed as a lump sum payment at the end of the deferral period and resuming your regular payment.
- Repayment plan. This allows an extra amount to be added to your regular payment, over a set number of months, to repay the amount deferred during the forbearance period.
- Loan Modification. If you are unable to pay a lump sum or enter into a repayment plan, you may be offered a loan modification. This may include an extension to the term of your loan that will provide for additional months in order to pay the amount deferred during the forbearance period as regular payments.
Is forbearance the right option for you?
While forbearance may be a great option to help you get through a crisis, there are some important facts to know.
- A forbearance does not stop interest from accruing.
- During the forbearance period, fees will be suspended.
- If you are current at the time you elect to receive a payment deferral, we will not report your account as delinquent to the credit reporting agencies as a result of your payment deferral.
- If you cannot make the lump sum payment and resume your regular payment, KeyBank will re-evaluate your circumstances for additional relief, which, among other things, may include a continuance of your forbearance if you are still facing a hardship.
How can I request payment relief?
If you wish to request a forbearance on your mortgage, home equity line of credit or home equity loan, please read the Important Notice below and then complete the form.
By submitting the below form, you hereby certify that you are experiencing a financial hardship due directly or indirectly to the COVID-19 emergency and are requesting KeyBank process a three (3) month forbearance of payments on your mortgage, home equity line of credit or home equity loan due to this hardship. During the forbearance period, you will not be required to make regular payments including principal, interest and, if applicable, escrow, for three (3) months. You will be required to repay all the deferred payments in a lump sum payment amount at the end of the three (3) month forbearance, along with resuming your regular payment. You may not be current if you fail to make the lump sum payment and resume your payments at the end of the forbearance period. Please note that this program does not result in payment forgiveness. You may be reviewed for other options if you are still experiencing a hardship at the end of the forbearance period.
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