You Can Postpone Mortgage Payments If Coronavirus Safety Measures Have Affected You
The Federal Housing Finance Agency (FHFA) is giving homeowners dealing with Coronavirus-related hardships mortgage relief. While safety measures are wise and necessary to reduce the spread of Coronavirus (officially named COVID-19), temporary business closures have dealt a financial blow to some homeowners.
In response, FHFA director Mark Calabria urged mortgage servicers to make forbearance options available to homeowners who are at risk of falling behind on their mortgage payments. So, what does this mortgage relief mean for you?
In this arrangement, the lender suspends or reduces mortgage payments for a period of time, up to six months, to allow borrowers to recover financially. Keep in mind that interest will continue to accrue and will be added back onto the loan. Be prepared for this reality.
Lenders often include a repayment or reinstatement plan with forbearance to aid the borrower in paying off the decreased or missed mortgage payments once their financial situation stabilizes.
Calabria encouraged homeowners to reach out to their mortgage servicer to learn which forbearance or other hardship mortgage relief options are available to them. The Uniform Mortgage-Backed Securities market will continue to operate as usual. Freddie Mac, Fannie Mae and the Federal Home Loan Banks will continue providing support to the secondary mortgage market.
The Federal Housing Administration (FHA) is also helping out homeowners. It provides a selection of loss mitigation solutions that mortgage servicers can offer borrowers experiencing hardship due to Coronavirus.
Other helpful resources for homeowners include:
- A list of counseling agencies approved by the Department of Housing and Urban Development using the Find A Counselor tool.
- HOPE Hotline is open 24 hours a day, seven days a week. Call 888-995-HOPE (4673).
- These banks are offering financial relief to homeowners affected by Coronavirus.
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