LOAN FORBEARANCE AVAILABLE TO BORROWERS AFFECTED BY COVID-19:
At the direction of The Federal Housing Finance Agency (FHFA) Fannie Mae and Freddie Mac announced they will provide payment forbearance to borrowers who have experienced a hardship resulting from COVID-19 (for example, unemployment, reduction in regular work hours, or illness of a borrower/co-borrower or dependent family member), which has impacted their ability to make their monthly mortgage loan payment. Borrowers are directed to contact their mortgage service provider for forbearance evaluation. Forbearance allows for a mortgage payment to be suspended for up to 12 months due to hardship caused by COVID-19. Fannie Mae borrowers are directed to contact Disaster Response Network at 1-877-5429723. The Freddie Mac Customer Support Contact Center can be reached at 1-800-FREDDIE.
On March 21, President Donald Trump ordered all foreclosures and evictions to cease for 60 days nationwide. This moratorium applies to most but not all mortgages. President Trump announced HUD is suspending all foreclosures and evictions for 60 days. The HUD foreclosure and eviction moratoriums are for all single-family homeowners with FHA-insured mortgages.
Mortgages that are guaranteed by the federal government — including FHA, VA and USDA loans — are still owned by private companies or investors. Borrowers must agree on a forbearance program directly with their lender before any of that help becomes available.
Many mortgage lenders have already announced help for customers who are financially affected by COVID-19. Below are just a few that have put out official announcements.
- Bank of America
- Capital One
- Quicken Loans (including Rocket Mortgage)
- U.S. Bank
- Wells Fargo