Many Americans have been laid off, furloughed, or lost a good chunk of income thanks to the coronavirus pandemic. The federal government has since created the Coronavirus Aid, Relief, and Economic Security Act to help relieve the financial burden faced by homeowners still paying off mortgages. Other private lenders are taking action to provide financial relief for their customers and prevent foreclosure.
If you have concerns about your ability to pay for your home during this unprecedented time, let a mortgage renegotiation attorney offer some guidance.
Verify The Type Of Mortgage You Have
The type of mortgage you have determines the kind of assistance you can receive. For entities sponsored by the government, you can get assistance with conventional loans from Freddie Mac and Fannie Mae. Federal housing offers help regarding FHA loans, and the Department of Agriculture has USDA loans available. All of these mortgages can receive financial aid under the CARES Act, along with individual assistance programs to help get you back on your feet.
But no matter what type of mortgage you have, you’ll want to reach out to your lender or a mortgage renegotiation attorney to discuss your specific options.
Forbearance Program Options
A “forbearance” is a process that allows you to either suspend your payments or make partial payments for a set amount of time, determined by your lender. Interest may add up during this time, and the amount you did not pay will be owed once the forbearance is over.
The CARES Act offers 180 days of forbearance for borrowers, who can request more time or end it if their circumstances change. If your income has been affected by the coronavirus, then you qualify for forbearance on your mortgage. Be sure to apply before your next payment due date. The CARES Act requires that lenders not report derogatory information with regard to the forebearance with credit bureaus, so you won’t have to worry about negatively affecting your credit. Your ability to buy another home or refinance will not be affected, and you should not accrue any additional fees.
If Your Mortgage Isn’t Backed By The Government
Unfortunately, the government does not back all mortgage types. Rather, these “portfolio loans” are kept by the lender or may be made by private lenders. Often, these types of loans are used by borrowers who are self-employed, not U.S. citizens, or have previously foreclosed on a property. The CARES Act does not cover these loans, but your lender may have their programs for assistance.
Your mortgage lender can help you if you’re concerned about being able to pay your next mortgage, no matter what type of loan you have. Don’t wait until your payment is delayed – call your lender to hear about your relief options to protect your credit. When you make that call, be sure to know your income amount, a rough estimate of your expenses each month, your most recent mortgage statement, and be able to describe your financial loss as a result of the coronavirus (documentation of this loss, such as a letter from your employer, would be helpful).
Let A Mortgage Renegotiation Attorney Help You
The Law Office of Gary I. Handin, P.A. is a reputable law firm that is passionate about providing quality legal assistance to all our clients. With over 40 years of experience, we have a wide range of diverse experiences, as well as knowledgeable and professional staff.
If your income has been negatively affected by the coronavirus, you shouldn’t have to lose your home. Our mortgage renegotiation attorneys can work with you and assist you by offering assistance that suits your unique circumstances. But even in the event of a potential foreclosure, we offer solutions such as loan reinstatement, renegotiations, and asset protection that can protect both you and your credit. For more information, call our office at 877-815-4560.
These unprecedented times are scary and unpredictable. If you have questions or concerns about keeping your home during financial distress, please give our office a call at 954-796-9600.