COVID-19 Mortgage Forbearance
Millions of Americans are facing financial hardship related to COVID-19. Mortgage relief programs outlined in the CARES Act offer some assistance, but forbearance is not forgiveness. Be sure you know what you’ll have to repay, and when.
While benefits can vary depending on your loan servicer, one caveat seems to be universal: Terms must be approved PRIOR TO ceasing your mortgage payments.
Mortgage Forbearance is Not Automatic
Contacting your loan servicer – the company you send the mortgage payment to – is Step One. You’ll be asked to provide proof of your financial circumstances, and they will explain any mortgage reduction or deferment programs available, as well as repayment terms.
Some of the repayment options include:
- All deferred payments due in one lump sum
- Repayment added to regular monthly payments
- Permanent loan modification
- Deferred payments due upon sale of home
You can find more information on a variety of websites. Here are some we’ve found valuable:
Forbes – Your Money and Coronavirus: A Financial Protection Guide. This article has links to dozens of articles you might find useful, including loan lookup links to see whether your mortgage is owned by Fannie Mae or Freddie Mac.
Sara Driscoll is a Broker Associate at Pacific Sotheby’s International Realty, serving San Diego home buyers and sellers since 1988. Realtor, DRE# 00988097.