Mortgage Relief Period that are Federally Backed Just Got Extended
Some people who are worried about paying their mortgages during this pandemic will luckily get an extended opportunity from the government. The Federal Housing Finance Agency Stated last week that Fannie Mae and Freddie Mac will extend their moratorium on foreclosures and evictions until August 31.
If you’re not 100% aware if your mortgage falls under this CARE ACT, the CFPB has a guide for figuring out who owns your mortgage.
The change reflects the reality of economic recovery during and after the COVID-19 pandemic. Many industries were shut down for more than 3 months and will take time at least that amount of time to recover. This left employees and employers struggling. Extending the moratorium shows that housing is one of the highest expenses people face each month.
If you’re struggling to make mortgage payments, the original opportunity to put your federally backed mortgage in forbearance is still an option. You can request a 180-day forbearance period and later request a 180-day extension on the back of that.
Your lender isn’t allowed to charge you any extra fees or penalties for delaying your payments or making arrangements for you to pay back that deferred balance later. You also don’t need to provide any documentation to prove your financial hardship.
The extension may also provide a sense of security for renters, who may have access to their own accommodations regarding payments. By taking some pressure off landlords, renters may feel less pressure from them to pay on time and in full.