Mortgage Relief Options for Homeowners Affected by COVID-19
As coronavirus safety measures continue to affect businesses nationwide, some homeowners are turning to mortgage relief options.
Homeowners who are facing temporary hardship due to COVID-19 have options to postpone mortgage payments, according to the Federal Housing Finance Agency (FHFA).
In an attempt to decrease mass foreclosures, the FHFA advised mortgage servicers to offer forbearance options to homeowners whose current financial situations may cause them to fall behind on payments.
Forbearance temporarily reduces or suspends mortgage payments for up to six months; interest will still accrue during that time and be tacked back onto the loan. Forbearance is often combined with a reinstatement/repayment plan to pay off the missed or reduced mortgage payments, when the homeowner's financial situation has stabilized.
The Federal Housing Administration (FHA) announced: “As with any other event that negatively impacts a borrower’s ability to pay their monthly mortgage payment, FHA’s suite of loss mitigation options provides solutions that mortgagees should offer to distressed borrowers, including those that could be impacted by the coronavirus, to help prevent them from going into foreclosure.”
If you or someone you know is facing difficulty at this time, the Consumer Financial Protection Bureau’s Find a Counselor tool provides a list of counseling agencies approved by the Department of Housing and Urban Development. Homeowners can also call the HOPE Hotline, open 24 hours a day, seven days a week, at 888-995-HOPE (4673).