27 Mar Homeowners May Be Eligible For a Break in Mortgage Payments
Homeowners who have lost income due to the COVID-19 pandemic may be able to delay or reduce their mortgage payments for up to a year. After assessing the homeowner’s financial situation, loan servicers can suspend payments for up to 12 months on mortgages backed by Fannie Mae and Freddie Mac. This delay or reduction of mortgage payments will not cause the borrower to incur any penalties or late fees, nor will it be reported to a credit agency.
Throughout the 12-month delay period, Fannie Mae and Freddie Mac can reevaluate a borrower’s ability to make their mortgage payments. This ensures the plan is still needed. Once the delay period ends, mortgage servicers will reach out to the borrower to set up an affordable repayment plan, which may include extending the term of the loan.
Before becoming eligible for this program, homeowners must let their mortgage servicer know they are struggling and discuss their options.