Over the last year, the pandemic has impacted many homeowners’ ability to make their mortgage payments. Thankfully, the government initiated a forbearance program to provide them with much-needed support.
However, unless this program is extended again, some of these plans expire soon. Nevertheless, there’s still time to request assistance. If your loan is backed by HUD/FHA, USDA, or VA, you can apply for initial forbearance by June 30, 2021.
The Consumer Finance Institute of the Federal Reserve Bank of Philadelphia recently surveyed a sample of homeowners with mortgages. The results indicate that some borrowers didn’t take advantage of the support available through forbearance.
It May Be Expensive
For most loans, there will be no additional fees, penalties, or additional interest (beyond scheduled amounts) added to your account, and you do not need to submit additional documentation to qualify.
It’s important to contact your mortgage provider to explain your current situation and determine the best plan available for your needs.
You Are Not Sure How To Apply
Here are 5 steps to follow when requesting mortgage forbearance:
- Find the contact information for your servicer
- Call your servicer
- Ask if you’re eligible for protection under the CARES Act
- Ask what happens when your forbearance period ends
- Ask your servicer to provide the agreement in writing
You’re Not Sure If You Qualify
You may have a right to a COVID hardship forbearance if:
- You experience financial hardship due to the coronavirus pandemic.
- You have a federally backed mortgage, which includes HUD/FHA, VA, USDA, Fannie Mae, and Freddie Mac loans.
If you are struggling to make your mortgage payments, servicers are generally required to discuss payment relief options with you, whether or not your loan is federally backed.
If you have additional concerns, let’s connect to answer your questions. We would love to help determine what your best options are.