The coronavirus pandemic has caused the economy to come to an abrupt halt, with many businesses being forced to cut their employees’ hours or move forward with layoffs or furloughs.
If your work has been impacted by COVID-19, you may be facing financial uncertainty—including how to make your mortgage payment.
But there is help on the way.
Fannie Mae and Freddie Mac recently unveiled a new mortgage deferral program to help homeowners facing financial hardship (the deferral program was outlined in a recent article on Housing Wire). Under the new program, borrowers facing a hardship (coronavirus-related or not) can defer two months of their mortgage payments, which is then added to the end of their mortgage.
This program was already in the works and was going to be announced later this year, but in response to the current crisis, the program is being rolled out early to support struggling homeowners.
So, what does this mean for you? These are unprecedented times, with many people facing financial hardship or uncertainty—but if you’re struggling to pay your mortgage, there are plans in place to help. If you’re in need, call your mortgage company and speak to them about your options.
NOTE: This article refers specifically to Freddie Mac and Fannie Mae backed loans.
That said, even if your loan is not backed by one of them, there are likely options your mortgage company can offer you.
Regardless, make sure you understand the terms your mortgage company is offering and that you agree to. For instance, they may offer to defer your payments for a number of months, however, the entire amount you deferred may be due at once when that time period is over. Or, they may offer to tack the deferred payments onto the end of the loan period. Not all deferral agreements are the same. And they are not a free pass—the deferred payments will still need to be paid.
