Current homeowners who are now in a tough financial position due to the COVID-19 pandemic have the opportunity to delay or reduce their mortgage payments for up to a year. Loan servicers can now suspend payments for up to 12 months on mortgages backed by Fannie Mae and Freddie Mac for homeowners who have lost income due to COVID-19. The delay or reduction of payments will excuse penalties and late fees that would otherwise be held against borrowers and will not be reported to credit agencies.
This relief applies to all property types including primary homes, secondary homes and investment properties. Fannie Mae and Freddie Mac have the ability to reevaluate a borrower’s ability to make their mortgage payments during the delay period to ensure that the plan is still needed. Once this forbearance period has ended, mortgage servicers can make an affordable repayment plan with the borrower which can include extending the term of the loan.
To become eligible, homeowners must contact their mortgage servicer to let them know that they are struggling and speak with them about their options.
See information from Fannie Mae here and Freddie Mac here.