You must contact your home loan servicer if you are facing financial hardship due to the Coronavirus
Under the newly enacted CARES act, if you find yourself newly unemployed due to the Coronavirus, it is best to contact your loan servicer (the company you make your mortgage payments to). You can ask for a forbearance of 90 days (more days can be requested if necessary). To qualify, your loan has to be owned by a government entity - either Fannie Mae, Freddie Mac, FHA, HUD, USDA or VA. If it isn't owned by a government entity, your servicer will determine rules for forbearance. Forbearance doesn't come without issues. If you get a 90-day forbearance, at the end of 90 days, a lump sum payment might be due for the current mortgage payment as well as the 3 months that you didn't pay. Many lenders may say they might consider a payment plan at the end of your forbearance period, or a loan extension and extend the term of your loan, or you could do a loan modification which may greatly impact your credit score. Please be sure you understand all the terms of forbearance if you have to go that direction.
Rember forbearance on your home loan does not mean forgiveness. If you need more information please reach out and you may also contact me directly at 540-834-6924.
As a leading real estate expert in the Fredericksburg, Stafford VA area, I am making information more available to everyone concerning the current effects of the virus on our local real estate market and Frequently asked Questions on forbearance. Check out more information on forbearance and what you should know if facing hardship due to convid19.
Be safe out there - Courtesy of Pam Martin, eXp Realty Fredericksburg, Stafford VA. 540-834-6924