We are deferring payments, extending the loan 3 months and letting the borrower(s) know there may be a balloon payment at the end - and reminding them how the payments will be applied once the loan goes back into repayment.
We were looking originally at doing this- 6 months rather than 3 months, but all of their payments for the next year or more could be going just to paying off that back-interest plus current interest, resulting in a substantial balloon as compared to the amount of interest originally deferred. This would probably be less of an issue with a smaller deferment period.
We're looking now at either extending, capitalizing the interest, re-amortizing -or- scraping the interest off and holding it in a separate "bucket" until payoff. Still working through the logistics and in discussions with our regulator.