Finding COVID-19 Mortgage Relief
The COVID-19 pandemic has impacted millions of people across the United States. We’ve witnessed a shift in financial freedom and stability as well, stemming from the loss of employment of over 20 million individuals. In such trying times, it’s easy to feel displaced especially when you have financial stress looming. One of the areas where people have struggled the most is in paying their home mortgage. Thankfully, there are various COVID-19 mortgage relief programs available to you. Below, we’ll walk through some options to get your mortgage payments back on track!
In forbearance, most loans don’t place additional fees or penalties on you for this.
During COVID-19, you may be eligible for forbearance through your lender if you have experienced financial hardship due to the pandemic or if your loan is backed through a federal program like HUD/FHA.
However, the deadline for initially requesting forbearance with a federal program like HUD/FHA is September 30th, 2021.
There is no deadline set for loans through lenders like Fannie Mae and Freddie Mac. After you qualify, forbearance will typically last between 3 to 6 months, but most may be extended for up to one year.
Contact us today to learn about COVID-19 mortgage relief through forbearance.
Foreclosure Moratorium
During the COVID-19 pandemic, the United States government issued the COVID-19 Emergency Eviction and Foreclosure Act of 2020. This places a moratorium, otherwise known as postponement or prohibition, of both evictions and foreclosures.
This is in place until August 31st, 2021, unless further extended. Keep in mind, the foreclosure moratorium is only applicable to individuals who own 10 or fewer units.
As long as you are a mortgage borrower, this applies to you regardless of unit type. All that is required is you submit a Hardship Declaration.
For example, if you have a mortgage on a co-op or a condo, the moratorium is still valid. Though this option doesn’t assist you with direct financial compensation, it will provide you with shelter by allowing you to stay in your home. Participating in the foreclosure moratorium does not affect your credit score, either.
To learn how the foreclosure moratorium can help you with COVID-19 mortgage relief, schedule a free consultation today.
Advance Loan Modification
During the month of June 2021, the FHA, or the Federal Housing Administration, issued a home retention option for those impacted by COVID-19. This is known as the COVID-19 Advance Loan Modification, or COVID-19 ALM for short.
The program is offered to individual borrowers who are either at the end of their forbearance determination or over 90 days delinquent meaning you are 90-days behind on your mortgage payment. Additionally, the COVID-19 ALM program is directed towards individuals who have a 30-year rate.
This will reduce both the principal and the interest portions of your monthly mortgage payment by approximately 25 percent. Prior to qualifying for this, mortgage lenders must review FHA servicing requirements and offer COVID-19 ALM to anybody that qualifies.
If you accept the terms, you’ll be required to sign a mortgage modification document to your lender.
Get COVID-19 Mortgage Relief Today
The above three COVID-19 mortgage relief options scratch the surface of programs that you might be eligible for to reduce your financial burden.
Being unable to afford your monthly mortgage payments is certainly stress-inducing, but there are relief options available to you. Consider speaking with a qualified foreclosure defense attorney like the ones at our Foreclosure Defense Law Firm.
With our A+ BBB rating and over 30 years of combined experience, we can walk you through you all the mortgage relief options that you qualify for. Contact us for a free consultation and feel financial relief today.