Q: What is mortgage forbearance?
A: Forbearance is when your mortgage servicer or lender allows you to pause (suspend), or reduce your mortgage payments for a limited period of time while you regain your financial footing. Forbearance doesn’t mean your payments are forgiven or erased. You are still required to repay any missed or reduced payments in the future.
The federal CARES Act signed into law on March 27, 2020, puts in place two protections for homeowners with federally backed mortgages:
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Your lender or loan servicer may not foreclose on you for 60 days after March 18, 2020.
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If you experience financial hardship due to the coronavirus pandemic, you have a right to request a forbearance for up to 180 days. You also have the right to request an extension for up to another 180 days.
You must contact your loan servicer to request this forbearance. There will be no additional fees, penalties or additional interest (beyond scheduled amounts) added to your account. You do not need to submit additional documentation to qualify other than your claim to have a pandemic-related financial hardship.
If you don’t have a federally backed mortgage, you still may have relief options through your mortgage loan servicer or from your state.
Visit the Consumer Financial Protection Bureau for more information on mortgage forbearance.
Read this article for options if you’re unable to pay your mortgage.
https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/