COVID-19 INFORMATION AND RESOURCES…
Help For Renters…
No Lump Sum Required at the End of Forbearance” says FHFA’s Calabria 4/27/2020
Guide to coronavirus mortgage relief and renter options: If you can’t pay your mortgage, or can only pay a portion, contact your mortgage servicer immediately. Click here for updated information from Freddiemac Click here for updates for COVID-19 support for multifamily renters
If your ability to pay your mortgage is impacted, and your loan is owned by Fannie Mae or Freddie Mac (use the “loan lookup” tools: https://www.knowyouroptions.com/loanlookup for Fannie Mae or https://ww3.freddiemac.com/loanlookup/ for Freddie Mac to find out), you may be eligible to delay making your monthly mortgage payments for a temporary period, during which:
- You won’t incur late fees.
- Foreclosure and other legal proceedings will be suspended
It may take a while to get a loan servicer on the phone. Loan services are experiencing a high call volume and may also be impacted by the pandemic.
A new federal law, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, puts in place two protections for homeowners with federally backed mortgages:
A foreclosure moratorium
A right to forbearance for homeowners who are experiencing financial hardship due to the COVID-19 emergency
If you don’t have a federally backed mortgage, you still may have relief options through your mortgage servicer or from your state. To learn more about the forbearance process you can read the script the Enterprises provided to mortgage servicers…
Major mortgage relief options during the coronavirus pandemic
Mortgage forbearance
Forbearance is when your mortgage servicer or lender allows you to pause or reduce your mortgage payments for a limited period of time. Forbearance doesn’t erase what you owe – you’ll have to repay any missed or reduced payments in the future. If your income is restored, reach out to your servicer and resume making payments as soon as you can.
Depending on the kind of loan you have, there may be different forbearance options. If this option is available to you:
What is mortgage forbearance?
Forbearance is when your mortgage servicer or lender allows you to temporarily pay your mortgage at a lower payment or pause paying your mortgage. You will have to pay the payment reduction or the paused payments back later.
The Government Cares Act is pause or reduce your mortgage payments for a 6 month period and can extend for an additional 6 months then ask your mortgage servicer for options available…
As of 4/27/2020 The FHFA/Federal Housing Finance Agency.
For those borrowers who opt for forbearance, their mortgage servicer will contact them about 30-days before the end of the forbearance plan to see if the temporary hardship has been resolved and discuss a variety of repayment options. If the hardship has not been resolved, the forbearance plan can be extended. If the hardship has been resolved, the servicer will work with the borrower to:
Set up a repayment plan;
- Modify the loan so the borrower’s payments are added to the end of the mortgage; or
- Set up a modification that reduces the borrower’s monthly mortgage payment.
Fannie Mae: Understand Your COVID-19 Mortgage Options
Freddie Mac: Lump Sum Repayment is Not Required in Forbearance
Please let me know if we can help further @ [email protected] or 847-780-7430 Thank You And Be Safe, Dave Rigney
