As the pandemic continues to sweep throughout the world, many people have struggled to pay their mortgages. Thankfully, the Coronavirus, Aid, Relief, and Economic Security (CARES) Act established a 12-month maximum mortgage forbearance program for most loans. However, many people still are confused as to what the term means. Here we will explain what mortgage forbearance is and why it might be helpful for you.
Editorial | One of the hottest trending topics in the housing industry during the pandemic has been Forbearance. Millions of borrowers across the United States have been directly or indirectly impacted financially by the volatility of the current market and could potentially benefit from seeking a Forbearance. Many borrowers, however, are unfamiliar with how this type of mortgage relief program works. Borrowers must keep in mind that forbearance doesn’t erase what they owe. Instead, it provides options on how they can affordably repay missed payments later on. In essence, a forbearance is a written agreement that allows a borrower to reduce or suspend monthly payments for a specified time.
Loan forbearance is a viable option you may consider if you experience financial hardship and start missing your monthly mortgage payments. It allows you to reduce or suspend your payments for a period of time and determine a plan on how to repay them after.
For millions of borrowers who are struggling to pay their mortgage, help is on the way under the Coronavirus Aid, Relief, and Economic Act a.k.a. the CARES Act. When you contact your mortgage servicer or lender to get financial relief, it’s important that you know your rights as a homeowner.
The new coronavirus disease of 2019, or COVID-19, continues to plague homeowners nationwide. The Federal National Mortgage Association (a.k.a. Fannie Mae) offers mortgage relief options to homeowners who have been affected by the pandemic disease.