Tuesday, April 7, 2020 / by Ryan Huemmer
CARES Act - Coronavirus Relief Bill
Congress enacted the CARES Act which included a provision on all federally backed mortgages. The Act consists of two major parts.
1. Blocks lenders from starting the foreclosure proceedings for at least 60 days (started March 18th).
2. Gives homeowners who are experiencing a financial hardship due to coronavirus the option to request up to 180 days of forbearance on their mortgage.
Forbearance is when your mortgage servicer, that’s the company that sends your mortgage statement and manages your loan, allows you to pause your payments for a limited period of time. Forbearance does not erase what you owe.
The types of forbearance available vary by loan type. If your mortgage is backed by the federal government—this includes FHA, VA, USDA, Fannie Mae and Freddie Mac loans.
One of the most important things to remember is that forbearance is not forgiveness. So, if you’re able to keep up with your payments, keep making them.
Also under the CARES Act, those who receive mortgage forbearance will also receive credit protection, meaning the loan service provider must continue to report the mortgage as current to the credit bureaus.
If you’re finding yourself in need of assistance, call your service provider to get the process started.
Amber Huemmer, Madison, WI Realtor
The Huemmer Home Team