What is mortgage forbearance?

Dated: 06/24/2020

Views: 116

  • 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. 

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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....

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