How to determine whether you qualify for pandemic-related mortgage relief

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How to determine whether you qualify for pandemic-related mortgage relief

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No matter what, keep talking, consumer advocates say

Even when a home is on the road toward foreclosure, there are steps an owner can take to get back on track.

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If you’re struggling with your mortgage and don’t think you qualify for pandemic-related payment relief, don’t despair. Here are some steps that can help you get back on track.

First, pin down who owns your mortgage. Call your mortgage servicer — the company you pay each month — and ask who holds the loan. You can also use tools provided by Fannie Mae and Freddie Mac to determine whether one of these federally chartered mortgage giants owns your loan. If your mortgage is backed by the federal government, or by Fannie or Freddie, you may qualify for up to 18 months of total forbearance, and you’re protected from foreclosure until June 30, 2021.

‘The worst thing you can do is do nothing.’

— Susan Ifill, NeighborWorks America

If your loan isn’t in this category, that “doesn’t mean there isn’t relief” available to you, says Kristen Holt, CEO of nonprofit financial counseling organization GreenPath Financial Wellness. Some servicers are trying to offer homeowners with privately held loans the same options available to federally backed borrowers. Contact your servicer and ask about temporary payment reductions or suspensions and other relief options. If you’re not sure who services your loan, search the Mortgage Electronic Registration Systems site. 

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A housing counselor approved by the U.S. Department of Housing and Urban Development can help find solutions for borrowers who aren’t getting the answers they need from servicers and determine whether any state-level orders, or other guidance, provide additional protections. You can find a local housing counselor via an online tool provided by the Consumer Financial Protection Bureau. 

See: Door is shut to millions of American homeowners in need of mortgage relief as pandemic enters Year 2

Beware of companies that charge upfront fees for mortgage assistance or promise to stop a foreclosure. “Messages of hope in some cases are coming from scammers taking advantage of consumers in their weakest moment,” says Susan Ifill, executive vice president and chief operating officer at nonprofit housing and community development organization NeighborWorks America.

If you’re already in a plan that temporarily suspends or reduces your mortgage payments, stay in touch with your servicer about potential next steps. You may be able to extend the forbearance, if needed; resume your regular payments while moving your missed payments to the end of the loan term; get a modification that makes your monthly payments more affordable; or pursue other options.

No matter what, keep talking, consumer advocates say, because mortgage troubles will likely only get worse if they’re ignored. “The worst thing you can do is do nothing,” Ifill says. “It’s OK to not be OK and get extra help.”