Mortgage Payment Forbearance: Cares Act (Covid19 Stimulus Plan)

The CARES Act short for Coronavirus Aid, Relief and Economic Security Act has passed, it’s a $2 Trillion Stimulus Bill for the “American People” within its hundreds & hundreds of pages it begins to lay out the terms for Mortgage Payment Forbearance on Sec 4022.

A Mortgage Payment Forbearance pushes back when the payment is due, it doesn’t make the payment go away. ​​​

​If you’ve recently been laid off during this time of social distancing you can get a forbearance on your mortgage payments for a total of 12 months: 6 months on your initial request & an additional 6 months after your second request without any fees or penalties.

The qualifications are pretty simple: 

1. Your home has to be a 1-4 Family Home
   
2. The mortgage has to be a Government-backed loan which most are, such as FHA, Fannie Mae, Freddie Mac, VA, Dept of Agriculture & Hud
   
3. You have to Affirm that you are experiencing financial hardship during this Covid-19 outbreak. (no additional documentation required)

How to get it: 

1. Call your current lender (listed on your monthly mortgage statement)
   1. While you're on hold with them (which will be a while), check if their website has an application for Mortgage Payment Forbearance. 
2. Request a Mortgage Payment Forbearance Plan 
3. Affirm that you are experiencing financial hardship during this Covid-19 Outbreak.  
   1. Sec 4022 of the CARES Act does not require proof 
4. Questions to ask:  
   1. Confirm that there are no fees or penalties 
   2. When will the payment on the skipped months specifically be due 
      1. Request the payments to be spread out rather than due in one large lump sum
   3. Will this count as a late on your: 
      1. Mortgage
      2. Credit Report
   4. Request something in writing as well
5. Follow their instructions ​

Author: Mohamed T Gulamali
​I'm not an attorney & this is not legal advice

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