You’ve heard of student loan deferral when adults go back
to college, but what if you could defer your mortgage. Yes, that’s
right…your mortgage. What if you could defer your mortgage for one year?
Yes, that’s twelve whole months of no mortgage payments. Twelve months of
not thinking it’s the first and I have to pay the mortgage. Twelve months
without the statement my mortgage is due on the 1st and late on the
15th repeating in your head. Twelve months of did I make my mortgage
payment yet. Twelve months of I hope my mortgage payment was received on time.
There is a company in California called
Mortgage Payment Deferral, Inc. that offers such
product. In 2006, the only lender licensed to offer 12MoDef is Harbinger
Mortgage Solutions, a licensed mortgage broker located in Northern California.
Mortgage Payment Deferral. Inc’s goal is to offer this product nationwide
in 2007.
12 Month Deferral Mortgage Defined
12MoDef works by setting aside some equity of a home into a
trust account for the benefit of the homeowner. The appointed trustee ensures
that the mortgage payment is made to the correct lender each month. A monthly
statement is given to the homeowner which combines their current mortgage
statement and trust account statement. During the payment deferral period, the
homeowner has three advantages:
keeps more of their income each month
guaranteed on-time mortgage payments
earns an aggressive rate of interest on the money in the
trust account
At the end of the deferral period, the trust account is closed.
The borrower is given all of the earned interest and they resume making their
mortgage payment.
Reasons for 12 Month Deferral Mortgage
making job changes
starting families
struggling with a new business venture
meeting the monthly financial burden of their mortgage
payment AND credit card debt
welcoming a new addition to the family
selling your house
paying down credit card debt
taking a vacation
handling a medical emergency
getting life under control
taking advantage of “maxing out” 401K contributions
for retirement age adults
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