The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) allows borrowers with federally backed mortgages who have a financial hardship directly or indirectly from the coronavirus pandemic to request forbearance. Forbearance doesn’t mean you don’t owe the mortgage payments, but it does mean that you don’t have to pay them for up to 6 months each time you apply, and you can apply twice.
Borrowers on these loans can postpone mortgage payments for 180 days (6 months) without incurring fees or penalties. And you can request to extend that forbearance for another 180 days. This is not loan forgiveness. The missed mortgage payments would still be owed eventually, likely by extending the duration of the loan.
The difficulty with this forbearance program is that it is not something the mortgage company has to do – they can certainly chose not to do so. Therefore it’s important to have an attorney who can help you navigate the process of applying for the forbearance not just the first time, but the second time as well. We can help you do this. If you are unsuccessful, we can examine other options such as a loan modification, refinancing or a Chapter 13 bankruptcy, or a combination of these. But the goal is to get you back on your feet, no matter what you do, and we can help.
Fill out the contact information below so we can get started to ensure you obtain your forbearance and keep you in your home.
Sweeney Law Offices is committed to helping consumers during this difficult economic time. Call now for further information and a free consultation: 248.719.5663.