If your finances have been affected by the COVID-19 outbreak, the government is now offering debt relief programs, such as suspended payments (or forbearance), a pause on evictions or foreclosures, or other measures. We’ve collected information from a number of major mortgage issuers, servicers and government programs to be able to find the best relief program that fits your situation.
If you’re having trouble paying your mortgage due to job loss or illness related to the coronavirus, assistance is now available.
We’ve gathered info for you from a range of lenders — but first let’s walk through some basics.
Who Owns Your Mortgage?
Before you can determine if you’re eligible for mortgage relief, you need to know who your loans investor is. Not to be confused with your loans servicer — You want to find out who your loans originator is. For example: FHA, Fannie Mae, Freddie Mac or Conventional.
If your loan is owned by Fannie or Freddie Mac, programs like the government forbearance plan may be an option for you. This is when they temporarily pause or reduce your mortgage payments. Servicer allows up to 6 months of missed payments if you’ve run into financial difficulty due to the Coronavirus, such as job loss, reduction in work hours or illness.
Private Mortgage Lender
If your mortgage isn’t owned by Fannie Mae or Freddie Mac, there are still some relief programs available.
The same Forbearance programs are available but the difference is the length in time. While Fannie and Freddie Mac loans may get 12 months of relief. Conventional or Private Investor loans may only get 3-6 months.
Each loan servicer has their own time criterias and review processes. To simplify, some loan servicers are also banks. For example "Bank Of America" is a bank that also services loans. And than you have servicers like Ocwen, Mr. Cooper & SLS who only work to service loans and are not banks. Depending on what type of servicer services your loan and who your loans originator is depends on what type of help you will receive.
Unlike a Government Forbearance that allows you to pause making your payments. A Mortgage Forbearance is when we negotiate terms to have you repay pass do payments. For example: if you were behind 12 months on your mortgage payments. We could get your loans servicer to allow you to setup a repayment plan "Mortgage Forbearance", and get you brought current by doubling your mortgage payments for 6 months.
While the forbearance might seem tempting; nothing comes for free. What the servicers and news organizations are not telling you is that once the forbearance comes to an end, all the payments that were paused will come due. So if your not working, it might come as a shock when your loans servicer ask for multiple months of mortgage payments to be paid off in full.
Loan Modifications can protect you from having to pay off all those past due payments.
We can get you approved for the forbearance and once the forbearance ends, we can get you into a loan modification review. Or we can focus directly on getting you into a loan modification review first if you were already behind on payments prior to Covid-19.
It all depends on your current situation and what best fits your needs today.
Don't hesitate to call us for more information. We specialize in these exact situations. If your looking for real help, don't hesitate. Call us today!
Summit Real Estate Law Firm