2020 has been a year of unexpected hardship for a lot of people, including homeowners. Many have been faced with a need for help with their mortgages. If you find that you may be in this situation, this may help. Mortgage forbearance gives you a break or a pause in your mortgage. The Consumer Financial Protection Bureau (CFPB) recommends 5 steps to follow to help you on your way:
Step 1 : Find the Contact Information of your Loan Servicer
A loan servicer is the company you pay your mortgage to. You can easily find this information at the bottom of you mortgage statement or online account. But when all else fails, google works!
Step 2: Contact your lender
Call your loan servicer’s number located on your statement and inform them of your financial hardship. you statement should have your loan number to assist you and the representative in locating your account quicker.
Step 3: Ask if your eligible for protections under the CARES Act
The CARES act helps homeowners who have federally backed loans such as FHA, Va, Freddie Mac, Fannie Mae, and USDA loans. The CARES Act was put into place to help homeowners affected by the coronavirus pandemic. Check with your lender to see if you are eligible.
Step 4: Find out what happens when forbearance ends
When you forbearance period ends, it’s good to know what’s coming down the road. . Some questions your going to want answered are:
- What fees are associated with your forbearance, if any?
- When will the forbearance period be over?
- What are my options for repayment?
- What happens to the months I miss?
Ask you lender to provide as many details as possible. You want to make the best decision for your situation.
Step 5: Get it in Writing
If you decide to get forbearance relief get it in writing. You want to have the agreement in writing for you protection. Make sure you got all of your questions answered and feel confident in your decision. Make sure the written agreement matches what you discussed with your loan servicer.
5 steps to a bit more relief and peace of mind in the hustle and bustle of this 2020 life. As we all adjust to the new normal, be encouraged. We are all in this together.
For more information visit:
www.consumerfinance.gov/housing
Sources:
Mortgage and housing assistance during the coronavirus national emergency. https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/ Accesed December 18, 2020.
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