When your mortgage servicer or lender allows you to reduce your mortgage payments or pause them for a period of time this known as forbearance.
At the time of writing this all you have to do is inform your servicer that you have a financial hardship related to the COVID-19 pandemic. You do not need to submit additional documentation to qualify for forbearance for most loans. No additional fees, interest fees or penalties are added to your loan balance.
ARE YOU ELIGIBLE FOR FORBEARANCE?
You may have a right to a COVID hardship forbearance if: you have a federally backed mortgage (including Fannie Mae, Freddie Mac, FHA/HUD, VA or USDA loans AND you experience financial hardship directly or indirectly to the COVID-19 pandemic.
YOUR PAYMENTS AREN’T ERASED
Regardless of what you heard forbearance doesn’t mean your payments are erased. Your servicer will contact you about how to repay the missed payments. You are still obligated to repay any missed payments, which, in most cases, may be repaid over time or when you refinance or sell your home.
WHEN IS THE FORBEARANCE APPLICATION DEADLINE?
The deadline for requesting an initial forbearance is June 30, 2021 if your loan is backed by HUD/FHA, USDA, or VA. There is no deadline for requesting an initial forbearance if your loan is backed by Fannie Mae or Freddie Mac at the moment.
Your initial forbearance plan will typically last 3 to 6 months. If you need more time to recover financially, you can request an extension.
For most loans, your forbearance can be extended up to 12 months. Some loans may be eligible for up to 18 months of forbearance, depending on when your initial forbearance started. Other limitations may apply.
If your mortgage is backed by Fannie Mae or Freddie Mac : You may request up to two additional three-month extensions, for a maximum of 18 months of total forbearance. But to be eligible, you must have been in an active forbearance plan as February 28, 2021.
If your mortgage is backed by HUD/FHA , USDA , or VA : You may request up to two additional three-month extensions, for a maximum of 18 months of total forbearance. But to qualify, you must have requested an initial forbearance plan on or before June 30, 2020. Not all borrowers will qualify for the maximum.