COVID-19 Mortgage Relief Options Available
Updated: May 17, 2020
The coronavirus pandemic is causing uncertainty across the nation—and for many, that includes financial uncertainty.
Luckily, there are options for homeowners impacted by the coronavirus. In a recent statement, Mark Calabria, Director of the Federal Housing Finance Agency (which regulates Fannie Mae, Freddie Mac, and the 11 Federal Home Loan Banks) called attention to options homeowners may have if they struggle to pay their mortgage during this time of crisis.
“To meet the needs of borrowers who may be impacted by the coronavirus, last week Fannie Mae and Freddie Mac (‘The Enterprises’) reminded mortgage servicers that hardship forbearance is an option for borrowers who are unable to make their monthly mortgage payment,” Calabria said in the statement. “For borrowers that may be experiencing a hardship, I encourage you to reach out to your servicer.”
The Federal Housing Administration also chimed in to remind homeowners of their options in a written statement last week: “The Federal Housing Administration (FHA) is reminding mortgagees of FHA’s loss mitigation program options, particularly in light of the recent reports on the Coronavirus (COVID-19). As with any other event that negatively impacts a borrower’s ability to pay their monthly mortgage payment, FHA’s suite of loss mitigation options provides solutions that mortgagees should offer to distressed borrowers – including those that could be impacted by the Coronavirus – to help prevent them from going into foreclosure. These home retention options are located in FHA’s Single Family Housing Policy Handbook 4000.1 Section III.A.2.”
The Takeaway: What does this mean for you? If your finances are being impacted by the coronavirus and you’re worried you won’t be able to make your mortgage payments, get in touch with your lender. There are supports in place to help guide you through this difficult time.