What is mortgage forbearance?

Dated: 06/24/2020

Views: 248

  • As the coronavirus began sweeping through the country in March, many states issued shut-down orders for businesses, putting as many as 40 million people out of work by May. On March 27, Congress passed the CARES Act to offer economic relief to those affected by the shut-downs, expanding unemployment benefits and offering mortgage forbearance to homeowners with mortgages backed or insured by the federal government, including Freddie MacFannie MaeVA and FHA.

    Under the CARES Act, homeowners can ask for forbearance from their mortgage servicer and suspend payments for up to 12 months. There are now more than 4 million mortgage loans in forbearance, and we know that homeowners have many questions about the specifics of the program.

  • How do I request mortgage forbearance? 

    To request mortgage relief under the CARES Act there are two options:

    1. You can phone your loan servicer directly. Your servicer is the company that you send your mortgage payments to each month and the number should be available on your payment statement or online.

    2. You can write and send a hardship letter affirming that you are enduring financial distress brought about by COVID-19. This creates a written record that you are pursuing forbearance protection. Letters may be emailed, faxed, or physically mailed to your mortgage servicer.

    As your trusted Real Estate Professional I am here to help you and your family during this extremely difficult time. If I can help you or a family member by answering more quesitons about this process or advice about value or selling your home; all you need to do is call me. Wayne Gaddy 843-603-5552  I have been Keeping My Clients Moving Since 2003. 

Blog author image

Wayne Gaddy

Local Real Estate Broker/REALTORĀ® representing Sellers and Buyers with Residential Homes, Condos, Vacation Homes, New Homes, Land and Investment Property since 2003. I would be honored to have an op....

Latest Blog Posts

SOUTH CAROLINA REAL ESTATE Home Owners Association DISCLOSURE

Properties that are within an HOA or POA, and are currently involved in litigation/legal action, "must" disclose this information on the SC Residential Property Condition Disclosure Statement

Read More

Avoid the NEW Freddie and Fannie REFINANCE 0.5% FEE beginning in September 2020

First let me explain this NEW Fee charged for Refinance Loan begining September 1, 2020.Fannie and Freddie’s New Refinance Fees Last week, Fannie Mae and Freddie Mac announced the

Read More

Hurricane Season in the Mist of a Pandemic

Hopefully by now; everyone knows what to do to prevent themselves from contracting Covid-19, wash your hands, don't touch your face with unclean hands. If you can stay home; if you can't wear a mask

Read More

Are you considering using an FHA mortgage to purchase your first home?

If so, see what you need to know in the comprehensive article...What is an FHA Mortgage?Over my twenty years of selling real estate, many homebuyers have asked me what an FHA mortgage is and how do

Read More