A resource for borrowers with loans insured or guaranteed by the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), or the Rural Housing Service (RHS)
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Mortgage Payment Forbearance provides a mortgage payment moderation option for all borrowers who, either directly or indirectly, suffer a financial hardship due to the novel coronavirus (COVID-19) national emergency.
No documentation is required to prove your hardship beyond your assertion that you are suffering from such a hardship. However, if you can still make your mortgage payments, you should continue to do so.
A forbearance is a temporary postponement or reduction of mortgage payments. It is not payment forgiveness. Under the CARES Act, borrowers are entitled to an initial forbearance period of up to 180 days, upon a borrower’s request. Also, upon a borrower’s request, the forbearance must be extended for up to an additional 180 days. A borrower can, at any time the borrower chooses, shorten the forbearance and resume repayment of the loan.
Mortgage Payment Forbearance Request
To request this forbearance, do the following:
• Contact your mortgage servicer to request forbearance. Contact information is found on your monthly mortgage statement.
• Utilize servicers’ websites or email as a primary method of communication and be patient. Servicers are facing large volumes of requests.
• Remember, the missed payments must be repaid, although they may be paid back over time. Forbearance of payments doesn’t mean forgiveness of payments.
Mortgage Payment Forbearance
• Be sure to contact your servicer as soon as your hardship is over, or you can resume making your regular monthly mortgage payment to end the forbearance. Discuss what repayment options are available.
• If you were current on your mortgage when the CARES Act forbearance was granted, your mortgage servicer is required to report your account as current during the forbearance period to the Credit Reporting Agencies.
• If you were delinquent on your mortgage when the CARES Act Forbearance was requested, your mortgage servicer is required to maintain the delinquent status reported to the Credit Reporting Agencies during the forbearance period. However, if you bring your mortgage current during the forbearance period, your mortgage servicer is required to report the status as current.
Repayment Requirements for Veterans Affairs Mortgages
Servicers of VA loans cannot require borrowers to make a lump sum payment immediately after a borrower exits a CARES Act forbearance. VA has a suite of loss mitigation options that can assist Veteran borrowers who must repay amounts that were subject to a forbearance. In addition, VA is continuing to evaluate other options to further assist borrowers affected by the novel coronavirus (COVID-19) national emergency. For additional information, please visit our website at www.benefits.va.gov/homeloans/index.asp, where you can find a list of frequently asked CARES Act questions. In addition, you may call (877) 827-3702 to contact a VA Regional Loan Center.
• All homeowners (including those with FHA, VA and USDA loans) can use Consumer Financial Protection Bureau’s (CFPB) “Find a Counselor” tool to find counseling agencies approved by the Department of Housing and Urban Development (HUD) in your area. Online counseling is available.
• You can also call the HOPE™ Hotline, open 24 hours a day, seven days a week, at (888) 995-HOPE (4673).
For more finance-related information
Visit CFPB’s coronavirus website www.consumerfinance.gov/coronavirus for mortgage relief options, tips to keep up on your finances, and more.
For more information on VA & State Benefits contact Montgomery County Veterans Service at 936-539-7842 or email at [email protected].
**Due to the coronavirus guideline compliance our office can only see clients via appointment**