9 tips when applying for coronavirus mortgage relief

The coronavirus pandemic is effecting millions of people financially and many may be struggling to pay their mortgage.

News 12 Staff

May 7, 2020, 1:57 PM

Updated 1,438 days ago

Share:

The coronavirus pandemic is effecting millions of people financially and many may be struggling to pay their mortgage. Federal and state governments, as well as financial institutions and loan servicers have announced plans to help struggling homeowners during this time.
Here are 9 tips for what your options are for paying the mortgage. 
Here are ways the federal government is offering relief options to homeowners through the recently passed CARES Act.
1 – Apply for assistance through the CARES Act Relief Options for all federally backed mortgages.
A new federal law, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, puts in place two protections for homeowners with federally backed mortgages: 
-First, your lender or loan servicer may not foreclose on you for 60 days after March 18, 2020. 
-Second, if you experience financial hardship due to the coronavirus pandemic, you have a right to request a forbearance for up to 180 days.
2 – Figure out who services your mortgage.
Your mortgage servicer is the company that you send your mortgage payments to each month.
3 – Request a forbearance.
Call your servicer and let them know your situation immediately. Ask them what “forbearance” or “hardship” options may be available.
4 – Keep written documentation on hand.
-Make sure that you have this documentation available in case there are any errors on your monthly mortgage statements to ensure that your statement reflects the assistance provided.
5 – Pay attention to your monthly mortgage statement.
Monitor your monthly mortgage statements to make sure you don’t see any errors.
6 – Stop or change auto-payments for your mortgage.
If you are having your mortgage payment deducted automatically from your bank account, make sure you make any necessary adjustment to avoid any fees or charges.
7 – Keep an eye on your credit.
If you stop making mortgage payments without a forbearance agreement, the servicer will report this information to the credit reporting companies, and it can have a lasting negative impact on your credit history.
8 – Repaying a forbearance.
Generally, repayment of forbearance occurs by the amount being repaid:
-In one lump sum at the end of the forbearance period
-Added onto your existing monthly payments over a set number of months
-Added to the end of your loan as additional payments or as a lump sum
9 – If you are unable to payback forbearance.
If you don’t think that you will be able to resume your mortgage payments at the end of the forbearance period, contact your mortgage servicer before the end of your forbearance period. They might be able to offer you longer term help.
MORE: Coronavirus Resources

Photos: COVID-19 impacts the world
undefined
 
 


More from News 12