A federal law passed on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, puts in place protections for homeowners with mortgages that are federally or Government Sponsored Enterprise (GSE) backed or funded (FHA, VA, USDA, Fannie Mae,Freddie Mac.
The CARES Act provides many homeowners with the right to have all mortgage payments completely paused for a period of time.under the CARES Act, if you have a federally or GSE-backed mortgage, you can request and obtain a forbearance for up to 180 days.
Servicers are obligated to provide a CARES Act forbearance if: (1) a borrower requests forbearance, and (2) the borrower affirms financial hardship due to the COVID-19 emergency.
Keep in mind, the missed payments are still owed, check with your servicer for individual options.
Homeowners with mortgages owned or guaranteed by Fannie Mae or Freddie Mac may be eligible for different repayment options following forbearance. Fannie Mae and Freddie Mac do not require a lump sum payment at the end of the forbearance.
If you can afford to resume your regular monthly mortgage payment you may be eligible for a payment deferral which puts your missed mortgage payments into a payment due at the sale or refinancing of your home, or at the end of the loan.
FHA does not require lump sum repayment at the end of the forbearance. The COVID-19 home retention option, called the COVID-19 Standalone Partial Claim, places amounts you owe into a junior lien that is repaid when you refinance your mortgage or sell your home or your mortgage otherwise terminates. If you do not qualify for the COVID-19 Standalone Partial Claim, FHA offers other tools to help you repay the missed payments over time.
For more information on Federal Housing Administration Mortgages: answers@hud.gov, call 1-800-CALL-FHA (1-800-225-5342), or visit www.hud.gov .
If you have an FHA, VA or USDA loan, check out this fact sheet;
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