Reach out to your mortgage company for help if you are struggling to make your monthly mortgage payments during COVID-19. Through the CARES Act, homeowners are able to reach out to their mortgage companies and inform them they are suffering a hardship and unable to make their monthly payments. More importantly, this law requires mortgage companies to help you during COVID-19. You do have options, and one is to request a mortgage forbearance, which I will explain to you in this article. The mortgage relief bill has been extended until December 31, 2020. Therefore, the affect of this extension is positive for homeowners struggling to make their mortgage payments.

How do I know who holds my mortgage?

The company you make your payments to each month, is the mortgage Servicer. The federal agency who backs (or insures) your mortgage is held by the federal government (Fannie Mae, Freddie Mac, VA & USDA are the most common). The first step is to figure out if your mortgage is held publicly or privately. Private companies are typically mortgages held at the bank. For example, if you make your monthly mortgage payment to your local bank then your mortgage is likely held privately. I have listed the federal housing agencies below. You can click on the links to see their individual announcements on mortgage relief.

Contact your servicer to find out who holds your mortgage on a federal level.

• Fannie Mae 1-800-2FANNIE
• Freddie Mac 1-800-FREDDIE or FreddieMac.com/mymortgage
• VA – Get more information on VA foreclosures. For more information on VA evictions.
• USDA

If your mortgage is held by a private company (like an in-house mortgage at your bank) contact them to see if they can help you. In other words, public and private mortgage companies are trying to help as many people as they can with mortgage payment relief, during the pandemic.

Stressed out about your credit report? For information on how to repair it, click here.

Get Mortgage Payment Relief

I can totally understand how stressful it is to be unable to make your mortgage payment. Nevertheless, it is important to contact your mortgage company. Let them know you are struggling to make your mortgage payments. They are required to help you during the pandemic. Second, you need to inform them you are suffering a financial hardship and request a mortgage forbearance. Third, by requesting a mortgage forbearance, you are asking them to delay making your monthly mortgage payments to avoid foreclosure. As a positive result, this will keep you and your family in your home during this difficult time.

Mortgage forbearance means you delay making your monthly mortgage payments. For instance, you can delay making mortgage payments for up to 12 months. Although, it is not necessary for you to take the full 12 months if you don’t need it. For example, you can request a mortgage forbearance for 6 months, just realize you can request up to 12 months. At the same time, I am sure you are wondering how you are going to pay back the delayed payments. Honestly, it really does depend on the mortgage company. Therefore, I will give you a few scenarios of how it may work.

• A new mortgage agreement is made and repaid over a period of time. 
• The amount in forbearance is added to the end of the mortgage in monthly payments
• In most circumstances you do not have to pay this back in a lump sum (one big payment). 

Understand your New Agreement

Furthermore, its important you are comfortable with the new agreement and make sure you understand the details on how you will repay the amount of the delayed payments.

Above all, after receiving the forbearance (delaying your monthly mortgage payments), you will have money to pay for basic necessities like:

• Food
• Utilities
• Toiletries
• Car maintenance

In addition, it’s really important to understand how to budget. In the meantime, read my blog post on how to budget for beginners by clicking here.

After the Forbearance Period

In the event you are unable to make your monthly mortgage payments after the forbearance period ends, I highly recommend contacting your mortgage company and requesting a review of your loan terms. For instance, your mortgage company may be able to put you in a new mortgage product or loan terms that will make your mortgage payments more manageable. In conclusion, this will make it easier for you to make your monthly mortgage payments if you income is lower.

Do you need help understanding your options or help communicating this to your mortgage company? If so, contact a housing counseling agency approved by the US Department of Housing & Urban Development (HUD). Certified agency counselors offer their services at no-cost. In fact, this may be very helpful for you. Additionally, I have added the link below.

https://apps.hud.gov/offices/hsg/sfh/hcc/hcs.cfm.

Your Home is your Security

It is important to realize your home is the biggest purchase you make that provides security for you and your family. In other words, if you are concerned about making your monthly mortgage payments, contact your mortgage servicer or a financial counselor today!

For one thing, I care about you and the financial situation you are in. Ulitmately, I want to help you and make your financial life easier. Get in touch here if you have questions. I am happy to help.

To emphasize the CARES Act extension is beneficial to you given the fact that you are affected by COVID-19 and are have a difficult time making your monthly mortgage payments. Therefore, contact your mortgage company today.

Certainly let me know if your mortgage company will not help you and why they declined to help you. Ultimately, they are required by law to help you. Certainly, you can get in touch here. Together, we will get answers.

How to get through stressful times

Take a deep breath, slowly let the air out of your mouth and relax your shoulders. Everything is going to be ok. Yoga really helps me. I really enjoy “Yoga with Adrienne”! She is awesome, has a calming voice and explains exactly how to do yoga. You can view her yoga practice on Youtube. Yoga is great for the mind body and soul.

Eat healthy, get regular exercise and be kind to yourself. For example, exercise is a great way to release the extra hormones due to stress. Taking a fast-paced walk outside can really help. Stop thinking about all the negative things that could happen. Stop thinking about all the “what-if’s”. This will only cause you a lot of anxiety. Anxiety has a negative impact on our health. To stop anxiety, treat yourself kindly and think of enjoyable thoughts or ideas like what you are most thankful for. Start asking yourself the question, “how can I solve this problem.” I know you can do it!

Laughter is the best medicine! Above all, make sure to laugh and have fun in life. After all, it’s really good for you and your emotional health! Definitely hang out with your children, kids love to have fun!!!

• Play a game
• Go for a walk
• Enjoy a campfire
• Go to the park
• Watch a funny or inspirational movie
• Stop going on social media (If you are comparing yourself to others, it will appear like every one else’s their life is better.)

One final Point

Reach out to your mortgage company and request a forbearance for a period of time that works for you. Additionally, know that I am on your side to support you and that I am here to help you. With this in mind, please be kind to yourself, think positive thoughts, eat healthy and get the exercise you deserve.