Are you struggling to make your mortgage payment right now and need some additional assistance? If so, you should know that there have recently been laws passed regarding mortgage forbearance in the CARES Act, which are designed to give homeowners the relief they need during these hard times. Here are a few common questions you're likely to have about it.
What Is Mortgage Forbearance?
Mortgage forbearance is a process that allows you to reduce how much you own each month on your mortgage, or completely pause payments for a short amount of time. Understand that you are not skipping payments that never need to be paid back since you will always owe the full amount of principal remaining on your mortgage. All mortgage forbearance does is allows you to make up those missed payments at some point down the road.
Who Can Receive Mortgage Forbearance?
Know that you can only receive mortgage forbearance under the CARES Act if you have a mortgage that is backed by the government. This means that the mortgage is owned by Fannie Mae or Freddie Mac, or that you received an FHA, USDA, or VA loan.
However, if you have a loan directly through a private lender that is not one of those loan types, you may not be completely out of luck. Many lenders end up selling mortgages to Fannie Mae or Freddie Mac services. Make sure that you check with your lender because they may be the company that services the loan and no longer holds the debt.
In addition, private lenders may work with you in a similar way that the CARES Act allows. They may not be required to by law, but they would prefer for you to not default on your mortgage and cause the home to go into foreclosure.
Do You Need To Supply Documentation About A Loss Of Income?
One of the nice things about mortgage forbearance under the CARES Act is that you do not need to submit proof of your financial hardships in order to receive the forbearance. All you need to do is speak with your lender and request it. This not only makes the application process easier, but will help people who do not want to submit their financial information when they are currently going through a rough financial time in their life.
Reach out to your mortgage lender for more information about mortgage forbearance and how it can apply to your current home loan. For more information about getting a COVID mortgage relief, contact a local company, such as Save My Loan, LLC.Share