Are you struggling to pay your mortgage? Mortgage relief is available from the federal government. Millions of Americans have received mortgage assistance to help them pay bills or lessen the financial burden of their payments. The widespread unemployment and underemployment caused by the COVID-19 pandemic has hindered many homeowners’ ability to pay their mortgages.
In response, Congress passed an emergency mortgage relief program that allows certain qualified homeowners to pause their mortgage payments during periods of financial turmoil. Learn more about the CARES act, mortgage relief and more assistance options in the sections below.
Federal mortgage assistance is available to U.S. homeowners struggling to make their mortgage payments. The COVID-19 pandemic has placed a large financial burden on many individuals, especially those who are experiencing a loss or reduction of income.
To assist homeowners, Congress passed a mortgage relief program as part of the Coronavirus Aid, Relief, and Economic Security (CARES) act. This homeowner relief program allows certain qualified homeowners to temporarily pause their mortgage payments, also known as mortgage forbearance.
The mortgage relief program is open to homeowners with federally insured loans, including:
- FHA loans.
- VA loans.
- USDA loans.
- HUD loans.
- Fannie Mae loans.
- Freddie Mac loans.
To receive mortgage help through this program, you must be experiencing a financial hardship directly related to the COVID-19 pandemic. An example of a qualifying situation would be if your place of work had to close due to the pandemic.
Mortgage assistance is not automatic. You must contact your loan servicer and request forbearance in order to receive assistance. If you do not request forbearance, you must continue to make your regularly scheduled mortgage payments. Failing to make your mortgage payments could put you at risk of losing your home (foreclosure).
To receive mortgage relief through this program, you must request forbearance by the deadline, which varies depending on the type of mortgage you have.
- For HUD, FHA, VA or USDA loans, the deadline for requesting forbearance is September 30, 2021.
- For all other Fannie Mae and Freddie Mac loans, there is no deadline for requesting forbearance.
If you qualify for mortgage assistance and are granted a period of forbearance, it will only be temporary. Most forbearance periods last between three and six months. However, depending on the type of loan you have and your loan servicer, you may be able to request an extension on your forbearance period.Find out how to extend mortgage relief and learn more about the effects of forbearance in the next slides.