There are options for people struggling to make mortgage payments during COVID-19
December 21, 2020
Recent data from Fannie Mae indicate that, of those homeowners most clearly affected by the pandemic and its economic impact, more than 96 percent took advantage of a forbearance plan to help manage their financial obligations.
In Allegheny County, the percentage of homeowners with a mortgage backed by Fannie Mae who have entered into a forbearance plan is roughly 95 percent - below the Fannie Mae national average of 96 percent.
Under the federal CARES Act, homeowners experiencing hardship due to the pandemic are able to take a mortgage forbearance for up to one year, effectively suspending mortgage payments during that time. Homeowners with a Fannie-backed mortgage can still request a COVID-19 forbearance after December 31, when some protections under the CARES Act are set to expire.
If you’re having trouble paying your monthly mortgage bill due to the economic upheaval caused by the COVID-19 pandemic, you’re not alone. Millions of Americans have lost their jobs, been furloughed, had their hours reduced or have had to take time off work due to illness or to care for a family member – with or without pay.
The good news? You have options and there is help available.
“As we confront these unsettling times, it is important to help keep people in their homes,” said Malloy Evans, senior vice president at Fannie Mae, the government sponsored enterprise that finances about one in every four homes in the United States. “People need clarity during what can be a confusing, stressful process, with information and tools to successfully navigate housing payment options.”
A forbearance plan can offer temporary relief. Forbearance does not erase the amount you owe, but it allows for reduction or suspension of your mortgage payments for up to 12 months.
To request forbearance or other mortgage assistance, contact your mortgage servicer – the company that manages your monthly mortgage payments. Visit KnowYourOptions.com to find resources and information about the options available if you are facing financial hardship due to the COVID-19 pandemic.