The new coronavirus disease of 2019, or COVID-19, continues to plague homeowners nationwide. The Federal National Mortgage Association (a.k.a. Fannie Mae) offers mortgage relief options to homeowners who have been affected by the pandemic disease.
Homeowners suffering from sickness, job loss, income reduction, or other issues that hinder their ability to make monthly payments because of COVID-19 could avail of mortgage relief if Fannie Mae owns their loan. Fannie Mae could allow eligible homeowners to suspend or reduce monthly mortgage payments up to 12 months.
Loan Lookup is a tool that homeowners could use to find out if Fannie Mae owns their loan. They need to enter their information accurately to determine if they could qualify for available mortgage relief programs. Homeowners must immediately coordinate with their servicer to determine what forbearance plan best suits them. Below are mortgage helps available to homeowners who have been affected by the COVID-19.
- Up to 12 months reduction or suspension of mortgage payments.
- 60-day suspension on foreclosure sales and evictions of borrowers.
- Homeowners will not incur late fees.
- Servicers will temporarily suspend credit bureau reporting of homeowners with late payments.
- Servicers must work with homeowners to figure out a permanent workout option to easily repay the loan after forbearance.
Homeowners must determine their servicer
Homeowners should know that their servicers or the company that receives their monthly payments could change. Aside from getting a loan servicer transfer notice, homeowners may easily determine their servicer by checking the mortgage statement they receive. The name of the servicer or mortgage company and contact information could be found on the upper portion of the mortgage statement.
It’s important for homeowners to immediately get in touch with their respective mortgage servicers if they think their finances will be short in the upcoming months as a result of the COVID-19 pandemic. Homeowners, whose loans are owned by Fannie Mae, may also notify Fannie Mae’s Disaster Response Network to get in touch with a HUD-certified housing counselor. A housing counselor could help distressed borrowers work with their servicers to come up with personalized action plans on what relief they could avail of and create an affordable repayment plan.
Fannie Mae also provides help to affected renters
Apartment or multifamily home renters could also get relief if Fannie Mae secures the loan on the property that they are renting. Affected property owners could apply for forbearance up to 3 months if they would agree to temporarily suspend evictions of tenants who experience financial hardships as a result of the COVID-19. This is to ensure that families will remain safe in their rented homes during this time of national crisis. Fannie Mae believes that renters in more than 27,000 properties could benefit from the relief.
An RPM loan advisor could offer you a hand
At RPM Mortgage, we understand that many homeowners may experience hardships in repaying their mortgage in the coming months because of the COVID-19 pandemic. If you want to better understand your options, our professional loan advisors could give you insights in these trying times and help you come up with a workable solution that suits your situation.