What is a Mortgage Forbearance Program and Can It Apply to You
Right now, millions of Americans are taking advantage of Mortgage Forbearance Programs. So, what are they exactly? Mortgage forbearance allows homeowners to pause their mortgage payments while dealing with a temporary financial setback, like COVID-19.
With a mortgage forbearance, you'll be able to skip or make reduced payments for a predefined period of time. It’s important to remember: Mortgage forbearance is not a waiver, or a grant and you’ll still owe the amount from those missed or reduced payments at a later date.
When it comes to qualifying for a program like this, it can vary. The type of mortgage you have can decide what options fit your needs. Do you think mortgage forbearance might be for you?
Thanks to the CARES Act*, you may be able to take advantage of up to 12 months of mortgage forbearance if your mortgage is federally owned or backed. First, access your particular situation:
· If you can pay your mortgage, it’s important to keep paying
· Ask yourself, will this greatly affect your financial future?
· Be prepared to answer questions: what is your current state of your income, expenses and other assets? Is your financial hardship permanent or temporary?
· Get advice from your those in the field, whether that’s your real estate agent or title agent, they can help point you in the right direction before dealing with your lender or mortgage provider
Check your mortgage servicer’s website first for possible options. Right now, they are inundated with calls and it may be hard to get through, but luckily many websites are equipped with frequently asked questions that can help guide you in the right direction.
Have more questions? Give us a call 732-359-2009
* The Coronavirus Aid, Relief, and Economic Security Act also known as the CARES Act, is a law meant to address the economic fallout of the COVID-19 pandemic in the United States.