The economic impact of COVID-19 has devastated millions of American households. Among the benefits included in the CARES (Coronavirus Aid, Relief, and Economic Security) Act passed in late March, was mortgage forbearance for homeowners that have experienced a financial hardship “directly or indirectly” related to the coronavirus pandemic.
For those already in a mortgage forbearance as part of the CARES Act, the Consumer Financial Protection Bureau (CFPB) has created an informational video that provides details on how to repay once their forbearance ends. The video also explores various repayment options as well as how to request an extension.
For those households that still might need to request a mortgage forbearance as part of the CARES Act, you must reach out to your loan servicer first to explain that you are experiencing a financial hardship and are in need of assistance. The CFPB notes that “even for those loans not covered under the CARES Act, mortgage servicers are generally required to discuss relief options with you,” but adds that you should act fast as “some federally backed mortgages have a December 31, 2020 deadline for requesting an initial forbearance.”
The CFPB has also created a separate video that provides homeowners with five steps to request a mortgage forbearance due to the coronavirus. This video can be accessed here along with additional information and resources on how to request a forbearance or mortgage relief. And for those households—whether coming out of a forbearance or not—that are at risk of losing their home and in need of foreclosure counseling, please visit the Minnesota Homeownership Center website here or call 651-659-9336 (or Toll Free at 866-462-6466).