Mortgage Loan Forbearance

How do I get started?

You can easily apply for a mortgage forbearance 

• Complete the Mortgage Forbearance application
• Provide Proof of Hardship (if due to COVID-19, not required)
• Provide Proof of Income Most recent paystubs, Social Security Benefits Letter, Unemployment, etc. (if due to COVID-19, not required)
• Send all documentation to Coastal 1 of 4 ways:
  • Email to [email protected]
  • Fax to 866-570-1718
  • U.S. Mail:
    Coastal Credit Union
    Attn: Member Assistance Program
    P.O. BOX 58429
    Raleigh, NC  27658
  • Drop off at your nearest Coastal Branch

What is a Mortgage Loan Forbearance?

A Mortgage Loan Forbearance is an agreement between a lender and borrower to temporarily suspend loan payments.  Important things to consider:

• This is not payment forgiveness. This is a SIX-MONTH payment suspension and you will be required to pay the amount of the suspended payments in the future.
• Finance charges (e.g., interest) will continue to accrue during the forbearance period.
• After the forbearance period, you will be required to repay the suspended amounts by making a one-time, lump-sum payment equal to all the payments that were suspended. For example, if the forbearance period is 6 months, all payments will be due on the 7th month. If your mortgage is $2,000 per month, you will owe $14,000 on the 7th month.
• If you are unable to pay back the suspended payments at the end of the forbearance, a forbearance extension or a loan modification may be available.
• Your loan will not be reported delinquent to the credit reporting agencies during the forbearance period. However, any delinquencies that occurred prior to the forbearance periods may continue to be reported to credit reporting agencies.
• You may still make full or partial mortgage loan payments during your Forbearance period. Partial and escrow payments will be applied in accordance with the terms of your original loan agreement.
• You may discontinue or reduce the forbearance at any time by notifying us in writing if you desire to do so.

Do I qualify for a mortgage forbearance? 

In order to qualify for a forbearance, the following conditions apply:

• You must attest that you have incurred a hardship due to COVID-19 (e.g., your employment and income have been adversely affected by COVID-19).
• Property securing the real estate loan may be a principal residence, a second home, or an investment property.

How do I apply for a mortgage forbearance?

• You can access the Mortgage Forbearance application or call 800-868-4262 and press Option 4 to speak to a Member Assistance Representative.

What happens during the forbearance period?

• There is no charge for the forbearance and no late fees will be charged during this time, but interest continues to accrue.
• You may choose to make payments during the forbearance period without impacting the duration of the plan.
• Your loan will not be reported delinquent during the forbearance period unless you were already delinquent prior to forbearance.
• You may elect to continue making escrow payments for taxes and insurance, if we are collecting it now as part of your loan terms. If possible, it is best to continue to make the escrow payment in order to help avoid a higher payment in the future due to escrow shortages.

What happens at the end of the forbearance period?

There are several options at the end of the forbearance period

• Pay back all principal and interest payments that were suspended in one lump sum to reinstate your loan and start making regular payments again.
• Request an additional forbearance period (if available as an option); or
• Apply for a mortgage, home equity line or loan modification. Please note that there are various options for loan modifications, and they can be discussed with the Member Assistance Specialist. Modifications are subject to approval; or
• Pay off the mortgage loan in full; or
• After you have made 3 consecutive payments prior to a refinance approval, apply for a refinance your existing mortgage

If none of these options are feasible, then the foreclosure process with begin.