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What’s the process for mortgage relief and forbearance?

In response to the COVID-9 pandemic, owners of single-family homes with federally backed mortgages can apply for financial assistance under the CARES Act.

Mortgage Forbearance

Federally backed home loans can get six months of mortgage help. If you are having trouble with payments, your loan servicer should be able provide the following:

  • Defer or reduce your payments for six months if you contact your loan servicer to make arrangements
  • Give you another six months of mortgage relief at your request
  • Offer options for how you can make up the deferred or reduced payments. They will discuss these options with you at the end of your forbearance period.

It is important to note that forbearance does not mean your payments are forgiven or erased. You are required to repay any missed or reduce payments in the future that can be paid overtime. Forbearance must be repaid and there are multiple forbearance programs or options to help you based on the type of loan you have.

If you have a Fannie Mae, Freddie Mac, FHA, VA, or USDA loan, you will not have to pay back the amount that was suspended all at once, unless you are able to do so.

If you are unsure which mortgage you qualify for, please out the Consumer Financial Protections Bureau websites which are both available in English and Tagalog:

If your mortgage is backed or funded by federal agencies and GSEs (Fannie Mae and Freddie Mac), here are links for programs you may be eligible for:

If your mortgage loan is not covered by one of the federal agencies listed above, the loan is not covered by CARES Act. You can contact your loan servicer to see what options are available to you. You can find your servicer’s name on your mortgage statement or by searching on the Mortgage Electronic Registration Systems (MERS) website.

You can look at additional housing relief options on this website from the State of California.

This article was written and edited by the Tayo editorial desk and has been reviewed by an independent panel of subject matter experts.

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