How to find mortgage relief during the pandemic • EBONY

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As the COVID-19 pandemic continues, it challenges systemic racial inequity not only in health, but also in housing.

The 2020 U.S. Census Bureau Household Pulse Survey found significant disparities by race and ethnicity, with black households much more likely to miss or delay mortgage payments and experience of uncertainty over their next month’s payment than white households.

The survey also found that nearly 21% of black homeowners missed or deferred mortgage payments in May 2020, compared to 10% of white homeowners and about 13% of all homeowners with payments owed.

This gap persisted throughout the weeks of the survey, as black homeowners continue to be disproportionately affected by the impact of the pandemic on employment and financial stability.

Fannie Mae, one of the leading sources of financing for mortgages in the United States, is here to help you during this difficult time. They offer a range of financial assistance programs to help homeowners and tenants stay in their homes, keep their lights on, and stay afloat during times of economic hardship brought on by the pandemic.

If homeowners are experiencing financial hardship related to COVID-19, they must act immediately.

Homeowners should contact their mortgage agent to learn more about temporary mortgage assistance options, such as forbearance plans, which allow them to suspend or reduce their monthly mortgage payments for a period of time to regain their financial balance and stay in their house.

Being proactive in finding assistance options while still being able to make mortgage payments allows homeowners to work with their mortgage agent to determine eligibility for mortgage relief, such as a mortgage plan. ‘abstention, instead of completely missing payments – which could lead to negative impacts such as late payment. credit reports or late fees.

Homeowners should ask their mortgage agent – the company they send their monthly mortgage payment to – some of these relevant questions:

See also

  • Will a forbearance plan have a negative impact on my credit score?
  • What documents do I need to show that my finances have been affected by COVID-19?
  • If I go into a forbearance plan, can I still refinance or get a new mortgage later?
  • Will I have to pay the missed amounts all at once at the end of the forbearance plan?

A COVID-19 forbearance plan may provide temporary relief and some financial leeway, but it does not result in the remission of missed monthly payments. It is important to remember that we are talking about suspending or reducing monthly payments for a period of time and then making up for missed payments after the forbearance plan is completed.

At the end of the forbearance plan, homeowners have options on how to repay the missed amounts and should discuss the various options with their mortgage agent before their forbearance plan expires.

There are a number of options for reimbursing amounts missed after abstention:

  • Reinstate (pay the total missed payments in one go at the end of the forbearance, if the borrower is able to do so).
  • Repayment plan (pay a portion of overdue amounts each month for up to 12 months while continuing to make regular monthly mortgage payments).
  • Postpone payments (move or postpone overdue amounts until the end of the loan term). This option allows eligible borrowers to discount the loan and resume regular monthly mortgage payments. The deferred payment does not bear interest and there are no other changes to the terms of the mortgage. Deferred amounts are due on the maturity date, or the early sale or transfer of ownership, refinancing or repayment of the mortgage.
  • Modify the loan (constantly changing the terms of the mortgage, such as the term of the loan or the interest rate, in order to make payments affordable).

Fannie Mae offers mortgage assistance solutions to meet the needs of homeowners, including those of color. Fannie Mae provides options for borrowers to overcome financial difficulties as homeowners strive to regain a solid financial footing.

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