It's Not Too Late To Apply For Forbearance
![]() Over the past year, the pandemic made it challenging for some homeowners to make their mortgage payments. Thankfully, the government initiated a forbearance program to provide much-needed support. Unless they're extended once again, some of these plans and the corresponding mortgage payment deferral options will expire soon. That said, there's still time to request assistance. If your loan is backed by HUD/FHA, USDA, or VA, you can apply for initial forbearance by June 30, 2021. Recently, the Consumer Finance Institute of the Federal Reserve Bank of Philadelphia surveyed a national sample of 1,172 homeowners with mortgages. They discussed their familiarity with and understanding of lender accommodations that might be available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The results indicate that some borrowers didn't take advantage of the support available through forbearance:
Here are some of the reasons why those borrowers didn't opt for forbearance:
If you have similar questions or concerns, the following answers may ease your fears. If you're concerned forbearance may be costly:The Consumer Financial Protection Bureau (CFPB) explains:
It's important to contact your mortgage provider (the company you send your mortgage payment to every month) to explain your current situation and determine the best plan available for your needs. If you're not sure how to request forbearance:Here are 5 steps to follow when requesting mortgage forbearance:
If you don't understand how the plans work and/or whether you will qualify:This is how the Consumer Financial Protection Bureau (CFPB) explains the program:
The CFPB also addresses who qualifies for forbearance relief:
Bottom LineLike many Americans, your home may be your biggest asset. By acting quickly, you might be able to take advantage of critical relief options to help keep you in your home. Even if you tried to apply at the beginning of the pandemic and for some reason it didn't work out, try again. Contact your mortgage provider today to determine if you qualify. If you have additional concerns, let's connect to answer your questions and determine if there are other mortgage relief options in our area as well. Contact us for experienced representation when buying or selling a home in Amador County CA. |
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