Mortgage forbearance, a temporary pause in mortgage payments due to financial hardship caused by the COVID-19 pandemic, has provided relief to many homeowners. The end date of forbearance varies depending on the circumstances, but it’s crucial to understand the implications and plan accordingly.
Forbearance Period Under the CARES Act
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted in March 2020, provided initial mortgage forbearance protections for homeowners impacted by the COVID-19 pandemic. Under the CARES Act⁚
– Homeowners with federally backed mortgages (FHA, VA, USDA, Fannie Mae, Freddie Mac) were eligible for an initial forbearance period of up to 180 days.
– Borrowers could request an additional 180-day extension, for a total forbearance period of up to 360 days.
– During the forbearance period, homeowners could suspend their mortgage payments without penalty or impact to their credit score.
It’s important to note that the CARES Act forbearance program ended on May 31, 202However, many mortgage servicers are still offering forbearance options to eligible homeowners.
Key Points⁚
– The CARES Act provided an initial forbearance period of up to 180 days, with an optional 180-day extension.
– The CARES Act forbearance program ended on May 31, 2021.
– Some mortgage servicers may still offer forbearance options to eligible homeowners.
Six-Month Extension for Forbearance
In June 2021, the Biden administration announced a six-month extension of the forbearance period for homeowners with federally backed mortgages who are experiencing financial hardship due to the ongoing COVID-19 pandemic. This extension⁚
– Allows eligible homeowners to request an additional six months of forbearance, beyond the initial 180-day period and any previously granted extensions.
– Extends the forbearance end date to September 30, 2021, for homeowners who have not yet utilized their full forbearance entitlement.
– Provides flexibility for homeowners to exit forbearance gradually, with options for reduced payments or loan modifications.
Key Points⁚
– Eligible homeowners can request an additional six months of forbearance, up to a total of 18 months.
– The forbearance end date is extended to September 30, 2021.
– Homeowners have options for gradually exiting forbearance, such as reduced payments or loan modifications.
It’s important to note that this extension only applies to federally backed mortgages. Homeowners with privately backed mortgages should contact their mortgage servicer to inquire about any available forbearance options.
Forbearance End Date Variation
The end date of mortgage forbearance can vary depending on the circumstances and type of mortgage⁚
Federally Backed Mortgages⁚
– Forbearance end date extended to September 30, 2021, for homeowners who have not yet used their full forbearance entitlement.
– Homeowners with Fannie Mae or Freddie Mac loans may be eligible for an additional six months of forbearance beyond September 30th, based on individual circumstances.
Privately Backed Mortgages⁚
– Forbearance end date varies depending on the servicer’s policies and the homeowner’s agreement.
– Homeowners should contact their mortgage servicer to inquire about forbearance options and the end date.
Other Factors⁚
– Homeowners who have exited forbearance may be eligible for reinstatement, which allows them to resume making mortgage payments without penalty.
– Homeowners who are unable to resume payments at the end of the forbearance period should contact their mortgage servicer to explore other assistance options, such as loan modification or repayment plans.
Key Points⁚
– The forbearance end date varies depending on the type of mortgage and the servicer’s policies.
– Homeowners with federally backed mortgages may be eligible for an extension beyond September 30, 2021.
– Homeowners who are unable to resume payments at the end of the forbearance period should contact their mortgage servicer for assistance.
It’s important to note that forbearance is not forgiveness. Missed mortgage payments during the forbearance period will need to be repaid eventually, either through a lump sum payment, extended repayment plan, or loan modification.
Contacting Your Mortgage Servicer
If you’re nearing the end of your forbearance period or have any questions about your mortgage, it’s crucial to contact your mortgage servicer. Here’s how to do it⁚
Gather Information⁚
– Have your loan account number and personal information ready.
– Note down any specific questions or concerns you have.
Contact Methods⁚
– Phone⁚ Call the phone number listed on your mortgage statement or visit the servicer’s website for contact information.
– Online⁚ Many servicers offer online portals where you can send secure messages or check your account status.
– Mail⁚ Write a letter to your servicer’s mailing address, outlining your questions or concerns.
Be Prepared⁚
– Explain your situation clearly and provide any necessary documentation to support your request.
– Be patient and persistent, as wait times may be longer than usual.
Follow Up⁚
– Keep a record of your communication, including dates, times, and names of representatives you spoke with.
– If you don’t receive a response within a reasonable time, follow up again.
Explore Options⁚
– Discuss your financial situation with your servicer and explore options such as forbearance extension, loan modification, or repayment plans.
– Be open to providing documentation to support your request for assistance.
Remember⁚
– Communication is key. Reach out to your servicer well before the end of your forbearance period to avoid any surprises or penalties.
– Explore all available options to find the best solution for your situation.
– Don’t hesitate to seek professional advice if needed.
Mortgage Assistance Options
If you’re struggling to make mortgage payments after forbearance ends, several assistance options are available⁚
Forbearance Extension⁚
– Contact your mortgage servicer to request an extension of your forbearance period.
– Provide documentation to support your continued financial hardship.
Loan Modification⁚
– This involves permanently changing the terms of your mortgage, such as reducing the interest rate or extending the loan term.
– Requires a formal application and approval by the servicer.
Repayment Plans⁚
– Servicers may offer repayment plans that allow you to catch up on missed payments over time.
– Explore options such as repayment extensions or partial payments.
Mortgage Refinancing⁚
– Refinancing your mortgage into a loan with a lower interest rate or longer term can reduce your monthly payments.
– Requires a good credit score and may involve closing costs.
Home Affordable Modification Program (HAMP)⁚
– This government-backed program offers loan modifications to eligible homeowners who are at risk of foreclosure.
– Requires meeting specific income and hardship criteria.
Principal Forbearance⁚
– This option allows you to temporarily pause payments on the principal balance of your mortgage.
– Interest will continue to accrue during this period.
Non-Profit Counseling⁚
– HUD-approved housing counselors can provide free or low-cost advice on mortgage assistance options.
– They can help you negotiate with your servicer and explore available programs.
Remember⁚
– Explore all available options and choose the one that best suits your financial situation.
– Contact your mortgage servicer as soon as possible to discuss your options and avoid potential penalties.
– Don’t hesitate to seek professional advice if needed.
Seeking Professional Advice
If you’re facing challenges navigating mortgage assistance options or making informed decisions about your mortgage, consider seeking professional advice⁚
Housing Counselor⁚
– HUD-approved housing counselors provide free or low-cost guidance on mortgage issues.
– They can help you understand your options, negotiate with your servicer, and create a personalized plan.
Attorney⁚
– An attorney specializing in real estate or foreclosure defense can provide legal advice and represent you in negotiations with your mortgage servicer.
– They can help ensure your rights are protected and explore all available legal options.
Financial Advisor⁚
– A financial advisor can assess your overall financial situation and provide guidance on managing your mortgage debt.
– They can help you create a budget, explore debt consolidation options, and plan for the future.
Non-Profit Organizations⁚
– Non-profit organizations dedicated to housing assistance offer free or low-cost services to homeowners facing mortgage challenges.
– They can provide counseling, legal aid, and financial assistance programs.
Remember⁚
– Professional advice can empower you to make informed decisions and protect your interests.
– Explore resources in your community and reach out to professionals who can provide personalized guidance based on your specific situation.
– Don’t hesitate to seek help if you’re struggling to navigate the complexities of mortgage assistance.