Homeowners and renters across the country are experiencing the financial impacts of coronavirus. Read more to know how you can figure out if your lender or servicer can offer you any forms of assistance available.
If you’re among those financially impacted by the coronavirus pandemic, you might be concerned about how to pay your mortgage or rent. Federal and state governments have announced plans to help struggling homeowners during this time. Read this to get information on what to do now, and what your options are for mortgage and rental relief.
A new federal law, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, puts in place two protections for homeowners with federally backed mortgages:
- A foreclosure moratorium
- A right to forbearance for homeowners who are experiencing a financial hardship due to the COVID-19 emergency
If you don’t have a federally backed mortgage, you still may have relief options through your mortgage servicer or from your state.
Major mortgage relief options during the coronavirus pandemic
Mortgage forbearance
Forbearance is when your mortgage servicer or lender allows you to pause or reduce your mortgage payments for a limited period of time. Forbearance doesn’t erase what you owe – you’ll have to repay any missed or reduced payments in the future. If your income is restored, reach out to your servicer and resume making payments as soon as you can.
Depending on the kind of loan you have, there may be different forbearance options.
Moratoriums suspend or stop foreclosure
Foreclosure is when the lender takes back the property after the homeowner fails to make required payments on a mortgage. Foreclosure processes differ by state.
Freddie Mac
If you are a homeowner experiencing financial hardship directly or indirectly related to Coronavirus (COVID-19) and your mortgage is owned by Freddie Mac, contact your loan servicer (the company listed on your mortgage statement) right away to discuss your options.
Whether you’re facing job loss, reduced income, illness or other issues that impact your ability to make your monthly mortgage payment, Freddie Mac is working to ensure you are protected. In fact, the company has directed your loan servicer to provide mortgage relief options that include:
- Ensuring payment relief by providing forbearance for up to 12 months
- Waiving assessments of penalties or late fees
- Halting all foreclosure sales and evictions of borrowers living in homes owned by the company until at least May 17, 2020
- Suspending reporting to credit bureaus of past due payments of borrowers who are in a forbearance plan as a result of hardships attributable to this national emergency
- Offering loan modification options to provide mortgage payment relief or keep those payments the same after the forbearance period
Borrowers are eligible for forbearance regardless of whether their property is owner occupied, a second home or an investment property.
If you are struggling to make your mortgage payments or believe you may fall behind on your payments soon, don’t wait – contact your loan servicer now. They’re here to help you.
Fannie Mae
If Fannie Mae owns your mortgage loan, or if you’re a tenant in a multifamily rental property financed by Fannie Mae, our relief options can help you feel safe at home.
Mortgage Relief for Homeowners
If you are experiencing a hardship such as job loss, income reduction, or sickness due to COVID-19 and you are no longer able to make your mortgage payment, your mortgage servicer is available to help with mortgage relief options, including:
- Payment relief through a forbearance plan offers a reduction or suspension of your mortgage payments for up to 12 months, offered in increments of up to six months
- Late fee relief during your forbearance plan period
- Repayment options following your forbearance, including a repayment plan to catch up gradually or a permanent loan modification that aims to maintain or reduce your monthly payment
Additionally, foreclosure and eviction relief may be available through the federal CARES Act signed into law on Friday, March 27, 2020.
Contact Your Mortgage Servicer: If you're concerned about your mortgage payments, take the first step and call your mortgage servicer—that's the company listed on your monthly statement— to request help. Have your financial information handy when you call and note that many servicers are experiencing increased call volumes and hold times due to COVID-19.
Disaster Response Network for Homeowners and Renters
Fannie Mae's Disaster Response Network™ offers free help with the broader financial challenges caused by COVID-19. Its HUD-approved housing counselors can create a personalized action plan, offer financial coaching and budgeting, and support your ongoing success for up to 18 months. Whether you’re struggling to pay your rent or your mortgage, call today—you're not alone.
If you're a homeowner, access our Disaster Response Network, through our Loan Lookup Tool. If it confirms you have a Fannie Mae-owned loan, you can contact the number on the screen or request an appointment online.
If you're a renter, contact your property manager or building owner to see if you have access to our Disaster Response Network. This option is available only for tenants living in apartments or other multifamily rental properties financed by Fannie Mae.
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