Just like that, our world changed. The impact of COVID-19 is affecting people across the globe. The uncertainty has people wondering what is coming next.
Many homeowners have already been impacted by the coronavirus. Schools and businesses have closed to prevent the spread of COVID-19 and adhere to the social distancing guidelines outlined by the government.
Income has been affected. Unemployment applications are at an all time high. Fortunately, many organizations are recognizing the devastation some Americans are facing and are ready to help.
Fannie Mae has mortgage relief options that can help you feel safe in your home if your employment, health or income have been impacted by the coronavirus. According to their website the following options are available:
“If coronavirus has caused job loss, income reduction, sickness, or other issues that impact your ability to make your monthly mortgage payment, relief options are available.
- Homeowners impacted by this national emergency are eligible for a forbearance plan to reduce or suspend their mortgage payments for up to 12 months
- Homeowners in a forbearance plan will not incur late fees
- Credit bureau reporting of past due payments of borrowers in a forbearance plan as a result of hardships attributable to this national emergency is suspended
- After forbearance, a servicer must work with the borrower on a permanent workout option to help maintain or reduce monthly payment amounts as necessary, including a loan modification
- Foreclosure sales and evictions of borrowers are suspended for 60 days
Homeowners may request mortgage assistance by contacting their mortgage servicer—or, homeowners with a Fannie Mae-owned mortgage loan may work with our Disaster Response Network as outlined.” For assistance or more information call:1-800-232-6643.
Freddie Mac announced a variety of similar mortgage relief options.
The company announced that their measures “were available immediately and apply to borrowers who cannot pay their mortgage payments due to a decline in income resulting from the impact of COVID-19, regardless of whether they have contracted the virus.”
Their options, per their website, are as follows:
- "Ensuring payment relief by providing borrowers forbearance for up to 12 months;
- Waiving assessments of penalties or late fees against borrowers;
- Suspending the reporting of delinquency related to forbearance, repayment or trial plans to credit bureaus; and
- Allowing servicers to offer borrowers additional loss mitigation options that are typically only enacted to address natural disasters. This includes loan modifications that give servicers options to provide payment relief or keep the payment the same post the forbearance period.
Borrowers are eligible for forbearance regardless of whether their property is owner occupied, a second home or an investment property."
For more information on Freddie Mac mortgage relief, visit My Home By Freddie Mac.
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