Fannie Mae:
If you have a Fannie Mae mortgage and can’t make your payment due to a COVID-19-related job loss, income reduction, or illness, your mortgage servicer can help with mortgage relief options, including:
- A forbearance plan that lowers or suspends your mortgage payments for up to 12 months
- No late fees during the forbearance period
- Repayment options after the forbearance period, which include a repayment plan to catch up gradually or a loan modification plan to maintain or lower your monthly payment
- Foreclosure and eviction relief
Fannie Mae has another program—the Disaster Response Network—that can help with the broader financial implications of the COVID-19 emergency. The Disaster Response Networks provides access to HUD-approved housing counselors for homeowners with Fannie Mae-owned loans and renters in Fannie Mae-financed properties. The counselors can create personalized plans, provide financial coaching and budgeting, and support you for up to 18 months.
Freddie Mac:
If you have a Freddie Mac-owned mortgage, you may be eligible for help if you have been directly or indirectly impacted by the COVID-19 pandemic. There are currently several mortgage relief options if you can’t make your mortgage payment due to a loss or decline in income, including:
- Up to 12 months of mortgage forbearance
- Waived penalties and late fees
- Halt on all foreclosure actions and evictions until at least Aug. 31, 2020
- Loan modification options to lower payments or keep payments the same after the forbearance period
Forbearance is not forgiveness. Be wary if the option is a balloon payment rather than simply adding the unpaid months to the end of your mortgage.
WARNING, WARNING: Many relief programs are administered through your loan servicing company (the company you make your mortgage payment to). A loan servicing company can be notoriously difficult and unresponsive to work with.
If you are having difficulty making arrangements for a loan relief program that you are eligible for, contact the Law Office of Elliott Klein for assistance on how to proceed.