The CARES Act relief options apply for all federally backed mortgages. The CARES act is a new federal law that stands for Coronavirus Aid Relief and Economic Security puts into place a couple of protections for homeowners with federally backed mortgages:
For Starters, your loan servicer cannot foreclose on you for at least 60 days after March 18, 2020. To be more precise, the CARES Act prohibits any lenders or services from beginning a judicial or non-judicial foreclosure against you, or from a finalizing a foreclosure judgement or sale, during this period of time.
Second, if you are currently experiencing financial hardship due to the COVID 19 pandemic, you are entitled to request a forbearance for up to 180 days. In addition, you can request an extension for up to another 180 days. To start the process, you must contact your loan servicer to request this forbearance. There will be no additional fees, penalties, or additional interest (beyond scheduled amounts) added to your account that you have to worry about. You do not need to submit additional documentation to qualify other than your claim to have a pandemic-related financial hardship.
If you don’t have a federally backed mortgage, you still may have relief options through your mortgage loan servicer or from your state. For any questions on how to get access to this mortgage forbearance options please call Mortgages Done Right!