Resources for mortgage relief
Americans everywhere are suffering financially due to COVID-19 outbreak. If you or your family is struggling to make your monthly mortgage payment because of the COVID-19 pandemic there is help available. Help is being offered to the average homeowner by the Federal Government, State Government, as well as specific lenders. This help comes in the form of payment programs, forbearance, loan modifications, and other ways to reduce the financial burden of your monthly mortgage payments.
The Consumer Financial Protection Bureau (CFPB) offers insightful information regarding Mortgage Relief Options related to COVID-19.
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Federal mortgage relief programs
March 27, 2020 the CARES Act was signed into law. CARES is an acronym for Coronavirus Aid, Relief and Economic Security Act. The goal of this law that has taken place is to provide $2 trillion dollars in economic relief for American consumers impacted by COVID.
Here are some important aspects of the CARES Act…
- Applies to federally backed mortgages, which include conventional loans funded by Fannie Mae, Freddie Mac, FHA, USDA, and VA
- Gives borrower the right to request a forbearance for up to 180 days with an optional extension of an addition 180 days
- You may be able to freeze additional fees during the forbearance period
- The suspension of negative credit reporting for borrowers who were current on payments before their forbearance.
Payment deferral option by Fannie Mae and Freddie Mac
An announcement was made May 13, 2020 by the government-sponsored enterprises Fannie Mae and Freddie Mac. They announced that COVID-19 Payment Deferrals will be an available option to borrowers who own a federally backed mortgage starting July 1st.
FANNIE MAE COVID MORTGAGE RELIEF
Due to the CARES Act, Fannie Mae may qualify you for the following mortgage relief options…
- Ability to suspend mortgage payments for up to one year
- Suspension of late fees during the forbearance period
- Various repayment plans post forbearance, these payment plans include gradual repayment or loan modification
FREDDIE MAC
- Provides forbearance for up to a year
- Suspension of late fees during the forbearance period
- You may request a loan modification after forbearance or maintain a previous mortgage
Post Mortgage Forbearance Note: Borrowers who made 3 consecutive on-time payments after forbearance are eligible to refinance their home or qualify for a new mortgage.