There’s A New Deferral Option For Homeowners Who Can’t Make Mortgage Payments. Here’s What We Know.
Homeowners listen up! This is important.
It’s no doubt that it’s been difficult for many individuals around the U.S. to make mortgage payments as of recently.
However, homeowners who are struggling to make mortgage payments can consider a new deferral option according to the Federal Housing Finance Agency.
If your mortgage is backed by Fannie Mae and Freddie Mac, two government-controlled mortgage companies, there is a new payment plan coming soon!
Individuals who have borrowed money from government-backed loans have the right to delay mortgage payments up to 6 months to 1 year if they are experiencing financial hardship related to the virus under the CARES Act stimulus law.
Many individuals are also confused about re-paying missed payments, as there has been a lot of speculation about this topic. However in response, the FHFA has stated that there are multiple repayment options available.
To be even more specific,
“For homeowners in forbearance due to COVID-19, payment deferral allows them to make up missed forbearance payments when they sell their home or refinance,” said FHFA Director Mark Calabria. “This new forbearance repayment solution responsibly simplifies options for homeowners while providing an additional tool for mortgage servicers. Borrowers who can pay their mortgage should, because missed payments remain an obligation that will ultimately have to be repaid, said Calabria”
FHFA Director Mark Calabria
The deferral repayment option will begin July 1st of this year according to the FHFA.
This new option allows the borrower’s original mortgage payment to stay the same. However, when the loan ends or when a homeowner sells their house, the missed payments must be paid at once, all together. Regarding a refinance, missed payments will then be added to the principal of the new loan.
Keep in mind if after forbearance, individuals who are still unable to make mortgage payments, there are loan modifications available. You can check specific deferral options through Fannie Mae and Freddie Mac.
