Financial stress can significantly impact an individual’s ability to keep up with their necessary bills. Unfortunately, most people often first struggle to pay their mortgage payments in times of monetary stress. When you can’t make your monthly payments towards your mortgage, you risk entering default and potentially having your home and other properties repossessed. To avoid these complications, if you notice that you can’t pay your mortgage in a timely manner, there may be relief options for you. For mortgage relief in 2021, due to the COVID-19 pandemic, there are additional programs available to you. Please don’t hesitate to call and set up a free consultation with us today.
What is the Mortgage Relief in 2021 Program?
In 2021, there were multiple congressional acts passed to assist individuals and families in paying their mortgage or preventing foreclosure. These are detailed in the Coronavirus Aid, Relief, and Economy Security Act (CARES), as well as within the Consolidated Appropriations Act and American Rescue Plan Act of 2021. Each of these direct lenders to suspend borrower payments for up to 360 days if financial hardship due to COVID-19 was experienced. Alternatively, 90-day forbearance was available to individuals who held federally backed mortgages on multifamily homes. Thus, if your mortgage is backed federally, the legislation allows your payments to potentially be suspended up to a total of 18 months due to COVID-19 hardship.
What Types of Mortgages are Eligible for Relief?
In most cases, only mortgages that are federally backed are eligible for these forms of mortgage relief. This includes Government Sponsored Enterprises (GSEs). Some of the types of mortgages that might be eligible for relief under the various COVID-19 relief acts include those insured by the Federal Housing Administration (FHA), the Housing of Urban Development (HUD), the Housing and Community Development Act of 1992, the U.S. Department of Veterans Affairs (VA), the U.S. Department of Agriculture (USDA), or the Federal Home Loan Mortgage Corp or Federal National Mortgage Association (Freddie Mac and Frannie Mae, respectively). Therefore, if you hold any loans insured or guaranteed through these federal or governmentally backed programs, you could be eligible for mortgage relief. To specifically determine if your loan is eligible, you can contact your mortgage servicer directly, check online through the Frannie Mae or Freddie Mac lookups service, or through the MERS or Mortgage Electronic Registration Systems search tool. Alternatively, an experienced attorney can walk you through this process and help you identify whether your loans are eligible or not.
Other Mortgage Relief in 2021 Options
If after reviewing your loan you find that you are not eligible for federal mortgage relief, there could be other relief options available to you. These include requesting forbearance or loan modifications. These options are typically discussed directly with your lender. First, forbearance allows you to reduce your payments or temporarily suspend them. On the other hand, a loan modification is a more long-term option that could involve decreasing your interest rate or extending the length of your loan term. These options are not guaranteed and should be discussed with an experienced attorney to ensure you can get the most benefits possible from your lender.
Work with an Attorney Today
Mortgages can cause a lot of emotional distress, especially in times of financial struggle. To understand all of the mortgage relief options available to you, consider hiring an attorney. The attorneys at the Foreclosure Defense Group have over 50 years of combined experience working with all types of financial-based cases. With an A+ Better Business Bureau rating, you can be confident that we will discuss all options available for you. Call us today to schedule a free consultation to discuss how the Foreclosure Defense Group can help you get your mortgage back on track.