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.
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.
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.
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.
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:
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.
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.
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.
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!!!
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.
Learn More!
I hope you found this information helpful!
Any recommendations I make should be taken into consideration with your values and goals. You should make the best decision that aligns with your family’s values.
As a Financial Coach, my mission is to help families save more, spend less so they can buy and do the things most important to them and spend their time and energy focusing on their kids.
Spending quality time with your kids is more important than stressing about finances. Instead of going to friends and family and sharing your financial struggles, reach out to me. I love talking about money, values, assessments and strategies to make positive changes to your financial habits to live a life you love.
I understand because I’ve been through some really challenging financial situations. Learn more about me.
I’m a kind, heart-centered coach who is excited to help you! If you’re struggling with your finances, get the results you want – I promise to keep you accountable and help you manage your finances successfully . I have a 100% guaranteed or your money back for the 1st session!
Finally, I wish you success in your financial journey😊
Join the private Facebook community to get tips, tricks & hacks to save more, spend less & build excellent credit
Follow me on YouTube to get tips, tools and helpful resources to CRUSH your financial goals!
1:1 Coaching:
Get personalized coaching focused on you
If you have experienced unhealthy relationships and have feelings of bitterness, resentment or anger towards…
When you're a busy mom sleep is so important for your emotional, mental and physical…
In the aftermath of a toxic relationship, the world can feel like total chaos. For…
Here is a video I created that talks about a few different things I do…
Here's a video I created where I share how difficult Valentine's Day was for me…
Have you ever felt nervous, anxious or frustrated about receiving text messages from an ex…
This website uses cookies.