Struggling Homeowners Receive More Help on Mortgage Forbearance and Foreclosures
Several government agencies announced extensions to their forbearance plans and foreclosure moratoriums to help homeowners who are struggling to make mortgage payments due to financial hardship because of COVID.
Forbearance is when your mortgage servicer or lender allows you to pause or reduce your mortgage payments for a limited time.
Important! Please keep in mind that placing your mortgage in forbearance could affect your ability to qualify to refinance your mortgage or qualify for a new mortgage if you have plans to move in the future.
Forbearance does not mean your payments are forgiven or erased, and you will still be obligated to repay any missed payments. Your loan servicer will provide the repayment terms. So, if you are able to continue making your payments please do so.
Mortgages Backed by Fannie Mae or Freddie Mac
- Extended timeline: Homeowners have an additional three months of forbearance, bringing it up to 18 months total. To qualify, you must have been enrolled in a COVID forbearance plan by February 28. Federal Housing Finance Agency announced this extension.
- Extended foreclosure ban: There is now a moratorium on foreclosures for single-family mortgages through June 30, 2021. The moratorium had been set to expire March 31.
USDA-, FHA- or VA-Backed Mortgages
- New deadline: Borrowers can apply for forbearance through June 30, 2021. This is an extension from the previous March 31st deadline.
- Extended timeline: Borrowers can pause payments for 18 months total, gaining an additional 6 months of forbearance from the original 360 days. Must be signed up by June 30, 2021 to get this extension.
- Extended foreclosure ban: Servicers cannot initiate foreclosures on home until after July 1, 2021. It was set to expire on March 31.
- These announcements came from the Department of Housing and Urban Development, the Department of Veterans Affairs, and the Department of Agriculture.
Get the Help You Need
Don’t lose your home! If you or anyone you know is struggling with paying your mortgage for whatever reason, know that there is help out there and you are not alone. Reach out to me if you need more help for a confidential conversation. If you aren’t facing these troubles, how fortunate! If you think someone else might be, forward them this article and let them know there is help out there for them.
I'm Jordan and I love helping first time home buyers make their first home more affordable and stress-free! It all starts with your personal budget and how much you can comfortably afford. Let me know how I can help you make your real estate dreams come true.
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