Consumer Financial Protection Bureau (CFPB) - CARES Act Mortgage Forbearance: What You Need to Know

Consumer Financial Protection Bureau (CFPB) – CARES Act Mortgage Forbearance: What You Need to Know

If If you you you are are are experiencing experiencing experiencing. difficulty difficulty making making on on time on time time mortgage mortgage mortgage payments. payments payments payments due to due due to to to National Corona virus, emergency emergency forbearance forbearance forbearance may may may may be be. be an an be option option an option for for you. you you. for forbearance can can help consumers consumers help consumers get get get back back back on on their. their their on feet their feet feet during during Short-term financial difficulty, difficulty, but but there there there are are are a a a few few few things things things things you you you. you need need need to to to know know. know know and and and some important decisions you’ll you’ll need need to to make make. to make make forbearance forbearance forbearance forbearance is is. is is when when when your your mortgage That’s servicer. That’s the company company that the that company sends that sends your your sends your your. mortgage mortgage mortgage mortgage statement statement statement and and and statement and manages manages your loan or or lender lender allows allows allows you you you to. to to to pause pause pause or. or or reduce reduce your your. payments for. Period of forbearance does not erase what you owe you will have to repay any missed or reduced payments in the future. so if you are able to keep up with your payments, keep making them the types of forbearance available vary by loan type If your mortgage is backed by the federal government, this VA Fannie Mae Freddie Mac loans provisions of the recently enacted Cares Act, allow you to. Temporarily suspend payments if you if you experiencing financial difficulty due to to the the Corona virus your finances loan, servicers may also have forbearance deferment options for non-government backed loans, but options available to Mayer. Here’s how this works federally backed mortgages under the Cares Act. If you are experiencing financial hardship due Corona virus, pandemic, you have a right to request forbearance for up 180 days. You also have the right to request an extension for up an 180 days, but you must contact your loan servicer to request this forbearance. There won’t be any additional fees, or interest, added to account, regular interest will still accrue other than. Your servicer that you pandemic financial hardship, you won’t need to submit documentation to qualify for this forbearance. It’s important to find out what options available to you the The best place to find that information is from your servicer. Look for their contact on your monthly mortgage right financial institutions including mortgage services, are experiencing experiencing high high call call volumes. volumes, so there may be long. Time to talk to someone on the phone, regardless of the type mortgage you have or you communicate with your servicer. Here are some things to consider if you cannot make your mortgage payments and you are looking to suspend or reduce your payments. You will need to with your servicer if you decide to decide to forward with forbearance plan, ask your servicer how you will be required to to pay back the amount owed after after the the forbearance forbearance. period. period. Will Will you you owe you. owe owe the the the entire unpaid amount amount in a in lump a sum lump sum sum once once once the the paws paws paws the period period period has has has has ended ended ended. ended or or or? at at the the end end of. of the loan. Kendall Long-term be extended so that missed payments are added to the your mortgage. will will subsequent monthly payments be higher for a period of time to to make up deferred amount finally be on the lookout for scams and scammers looking to take advantage of consumers affected by virus, you might receive fraudulent calls emails, text messages or other offers to help you reduce or your mortgage payments. make sure you are working directly with your mortgage servicer for more. Information, including how to find a hud-approved housing counselor Go to Consumer Finance dot Gov slash Corona virus

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