Federally-Back Mortgage Relief Program Extended Through August

June 23, 2020

© Denise Kappa Dreamstime

Some good news for those worried about losing their homes to foreclosure due to job loss or wage reduction due to coronavirus. The Federal Housing Finance Agency announced last week that Fannie Mae and Freddie Mac will extend their moratorium on foreclosures and evictions that were set to expire at the end of June, now have been extended "at least” until August 31, 2020. The extension, along with the original relief period, applies to government-backed mortgages, those from Fannie and Freddie, the Federal Housing Administration (FHA), U.S. Department of Veterans Affairs (VA), the U.S. Department of Housing Development (HUD) or the U.S. Department of Agriculture (USDA). If you’re having trouble making mortgage payments, the original opportunity to put your federally backed mortgage in forbearance still applies: 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. If your mortgage isn’t federally backed, you may still be able to get your payments deferred by contacting your lender. The extension may also provide a sense of security for renters, who may have access to their own accommodations regarding payments. Many landlords operate as a small business and can’t afford to lose tenant payments without the risk of losing the property. By taking some pressure off landlords, renters may feel less pressure from them to pay on time and in full.

SOURCE: Two Cents

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