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Dec 14, 2020
If you’re currently feeling the stress of affording your mortgage payment, or know someone who is, there’s still time to get help. For homeowners experiencing financial hardship this year, the CARES Act provides mortgage payment deferral options, creating much-needed relief in these challenging times. It’s important, however, to understand how forbearance works. It’s not automatic. You need to take action now and apply for the program before these options expire. A study by the Urban Institute determined, “Approximately 400,000 homeowners who became delinquent after the pandemic began have forgone forbearance and become delinquent. These borrowers may not know they are eligible for forbearance.”
Thankfully, there’s still time to apply for forbearance, even if you’re just learning about it now. Doing so may be the game-changer you need to stay in your home, just when you need it most. Mike Fratantoni, Senior Vice President and Chief Economist at the Mortgage Bankers Association (MBA), explained, “The increase in new forbearance requests may be the result of additional outreach to homeowners who had previously not taken advantage of forbearance opportunities.”
If you need to apply for forbearance, but aren’t sure how to begin the process, the Consumer Financial Protection Bureau (CFPB) published 5 steps to follow when requesting mortgage forbearance:
>>Find the contact information for your servicer
>>Call your servicer
>>Ask if you’re eligible for protection under the CARES Act
>>Ask what happens when your forbearance period ends
>>Ask your servicer to provide the agreement in writing
Help is out there for homeowners in need, but it’s important to apply now while this benefit is still available. The Consumer Financial Protection Bureau says: don’t wait, forbearance is not automatic. It must be requested. Reach out to your mortgage provider today so you can get the assistance you need to protect the hard-earned investment you’ve made in your home.
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