In these uncertain times, it is unlikely that most of us will not be affected in some way whether it be by the pandemic itself or the potential financial crisis that follows.
Freddie Mac and Fannie Mae are offering a package of relief options for borrowers having trouble making their mortgage payments because of the financial disruptions caused by the COVID-19 virus. Some of the provisions include:
- Up to 12 months payment forbearance.
- Waiving of penalties and/or late fees.
- Suspending the reporting to credit bureaus of information about delinquencies, forbearance, or trial and repayment plans.
- Authorizing services to extend additional loss mitigation options include loan modifications.
- Freddie Mac, Fannie Mae and HUD are suspending foreclosures and evictions for the next sixty days.
These measures are effective immediately and apply to borrowers who are unable to make their mortgage payments due to a decline in income resulting from the impact of COVID-19, regardless of whether they have contracted the virus. Borrowers are eligible for forbearance regardless of whether the property is owner-occupied, a second home, or an investment property.
Freddie Mac and Fannie Mae are also looking to expanding relief available through well-known forbearance programs, allowing most affected borrowers to get assistance as expeditiously as possible. Borrowers who may be experiencing financial challenges due to COVID-19 are strongly encouraged to contact their mortgage servicer (the company where they send their monthly mortgage payments) as this is the best resource available. Another excellent resource is for borrowers through Fannie Mae is https://www.knowyouroptions.com/relief.