If you can pay your mortgage, CONTINUE TO PAY IT. If you cannot pay your mortgage or can only pay a portion of it.
CARES Act: This puts 2 protections for homeowners with federally backed mortgages:
1. Your lender cannot begin a judicial or non-judicial foreclosure or finalize a foreclosure.
2. You can request a forbearance for up to 180 days. You can also request for an additional extension for up to another 180 days.
To request a forbearance, please contact your loan servicer. You are still required to repay any missed or reduced payments in the future, so make sure you understand how it will be repaid. There are different options depending on your loan. Once your income is restored, reach out to your servicer and resume payments immediately so your future obligation is limited.
HOW TO KNOW YOUR MAJOR RELIEF OPTIONS:
1. Figure out who services your mortgage, you’ll need to contact them.
2. Figure out if your mortgage is federally backed to figure out if you qualify for the CARES Act. (Check the website below to see what companies offer federally backed loans)
If your loan is not federally backed, make sure to contact them to discuss your options.
TIP: check to see if your state is offering additional mortgage relief
TIPS FOR PROTECTING YOURSELF DURING RELIEF:
1. Keep written documentation
2. Pay attention to your monthly mortgage statement- check for errors
3. Stop or change auto-payments to avoid fees or charges
4. Keep an eye on your credit for errors or inaccuracies
5. Once your income is restored, contact your loan servicer and resume payments (you still owe the payments you missed, but less missed payments meal you’ll owe less down the road)
6. If you have extra money, put it away to pay off what’s needed later