As the COVID-19 crisis continues to wreak financial havoc across the globe – for homeowners, mortgage debt has the most significant impact on personal financial circumstances and is the make or break for not just individuals but also lenders. Every homeowner must seek help before it’s too late. Learn how to avoid Foreclosure with a Fannie Mae and Freddie Mac mortgage.
The FHFA, FNMA, and FHLMC are extending help to homeowners impacted by COVID-19. If you’re struggling to make your mortgage payments due to COVID-19, relief options are available.
Fannie Mae: The Federal National Mortgage Association (FNMA) and Freddie Mac: The Federal Home Loan Mortgage Corporation (FHLMC) are both home mortgage companies created by the US Congress. They are public government-sponsored enterprises and are regulated by The Federal Housing Finance Agency (FHFA). The FHFA, which was established under the Housing and Economic Recovery Act, ensures that both these enterprises (who buy and guarantee mortgages through lenders and investors) operate in a safe and sound, and reliable manner by providing liquidity, stability, and affordability in the marketplace.
The FHFA is closely monitoring the COVID-19 effect on the housing finance market and continues to update policies and guidelines to ensure Fannie Mae and Freddie Mac’s continued commitment to helping their customers, servicers, and the mortgage market as a whole, through these uncertain times.
When the COVID-19 pandemic has caused job loss, income decrease, illness, or other problems that can enable you to fall behind in your payments or affect your ability to pay your house mortgage, relief choices are available, and you are recommended to wait and get help straight away. CONTACT YOUR LOAN SERVICER (the company listed on your mortgage statement) without delay to discuss your options.
The options, in brief, are: *Payment Relief using a forbearance program offers a suspension or reduction of Your mortgage payments for up to 12 months, offered in increments of upward To six months. *late fee relief throughout your forbearance plan period. *Repayment options after your forbearance.
If your mortgage is owned by Fannie Mae or Freddie Mac or else you Want to Learn who owns your mortgage, contact Fannie Mae: 1-800-232-6643 or Freddie Mac: 1-800-373-3343 (8 am to 8 pm EST). Alternatively, click on these links for further information about your options: Get help from Fannie Mae or Get help from Freddie Mac. For more information and resources via the FHFA, click here.
Furthermore, foreclosure and eviction relief may be available through the federal CARES Act:
The Coronavirus Aid, Relief, and Economic Security Act is committed to protecting the American people from the impacts of COVID-19. It provides prompt economic assistance for American workers, families, and small businesses, and preserves jobs for our American industries.
The CARES Act Mortgage Forbearance allows borrowers with federally backed mortgages to request temporary loan forbearance for up to 180 days, with the right to apply for a further extension.
For more information regarding the CARES Act, Mortgage Forbearance click here to go to the U.S Department of The Treasury.