As we enter week 4 of quarantining and social distancing due to the COVID-19 health crisis, some serious thoughts start to come to mind. Many of us are thinking about long-term effects, especially as we’ve seen not just our health put into jeopardy, but the economy has been seriously impacted over the last month. For many, the beginning of the month means bills need to be paid, mortgages and rent is due. If your job has been impacted by COVID-19 for one reason or another, this could be causing some stress.
The Federal Housing Finance Agency (FHFA) recently released a notice stating that “Fannie Mae, Freddie Mac (the Enterprises) and the Federal Home Loan Banks are taking steps to help people who have been impacted by the coronavirus. If your ability to pay your mortgage is impacted, and your loan is owned by Fannie Mae or Freddie Mac, you may be eligible to delay making your monthly mortgage payments for a temporary period, during which:
- You won’t incur late fees.
- You won’t have delinquencies reported to the credit bureaus.
- Foreclosure and other legal proceedings will be suspended”
While this step may be essential for some, they do stress that if you are able to make your mortgage payment, that you do so. If taking part in a forbearance plan, the homeowner will not incur late fees or other penalties associated with not paying on time. But please keep in mind that the original terms of your mortgage do not change. It is important to talk to your servicer about how you will make up missed payments.
“This assistance is available to homeowners with single family or condominium mortgages owned by Fannie Mae or Freddie Mac (the Enterprises) regardless of whether their property is owner occupied, a second home, or an investment property.”
Additional FAQs on this assistance option can be found here.
If we can be of any assistance on this topic, or answer any questions you have about the current real estate marketplace, we are here to help! Please give us a call or email with any questions you may have, [email protected] or 571-429-7670.
Source: Federal Housing Finance Agency