How to Move Forward as COVID Forbearance Relief Meets First Timing Milestones

It’s been several months since lenders and federal agencies started offering COVID forbearance relief assistance programs aimed at giving Americans a break on their mortgages. These relief programs made it possible for many people to stay in their homes while dealing with the financial challenges of the pandemic crisis.

Now, components of the CARES act are hitting key milestones.

Many of these temporary COVID forbearance relief options that gave relief to many already stretched thin are ending, or changing, even as millions of homeowners remain in forbearance plans.

With executive orders issued and lawmakers continuing to debate relief options, many people face financial pressure and are having trouble understanding their options

Details of Current Regulations

Congress enacted the CARES Act in March that, along with federal guidelines, gave homeowners with federally backed loans two major forms of relief:

First, lenders are barred from starting foreclosure proceedings on federally backed loans until at least February 28, 2021.

Second, it gave homeowners with government-backed loans who are experiencing financial hardships because of COVID the option to request up to 180 days of forbearance on their mortgage and extend that up to 12 months if needed.

A Path Forward

People relying on forbearance relief are looking to prepare their next steps and are deciding how they will pay for essentials to support their households.

It’s not a matter of just contacting your servicer.

Even if servicers extend relief temporarily, the earlier borrowers reach out to our HUD-certified counselors who can examine their entire financial picture and prepare them to resume payments, the better.

If you’re concerned or confused about what you’re hearing, our housing counselors can assess your complete financial situation, help you evaluate options, make informed housing choices, and develop a customized plan to stay in your home.

To move forward as COVID forbearances change, your call to the HOPE Hotline will let you:

• Look at your total situation: Connecting with a counselor is a good chance for borrowers to take a close look at not only any loans currently on pause but their entire financial pictures such as changes in income, credit card debt, expenses, and other spending.
• Receive professional guidance: Speaking to a housing counselor provides homeowners with a trusted resource that empowers  you to make more informed housing and financial decisions
• Know that you are not alone:  Our counselors are here to help, not judge. We offer honest guidance, hope, and an empathetic ear throughout the process
• Understand options: We help homeowners explore all available options to help avoid foreclosure, including modifications, short sales, repayment plans, and  other options, We will work with you to  explore the latest extensions or creation of government programs that may be available
• Get a personalized action plan: Many homeowners may simply need assistance developing a plan to get them on a better financial path.  Our counselors take an in-depth look at current income and spending, they will create a tailored budget and plan of action.  Housing counselors will review options available to you and help determine the best solution for your particular situation

HOPE Hotline –  Your Next Step After COVID Forbearance Relief

We’re here to help you figure out next steps as COVID forbearance relief ends.  Our housing counselors are available around the clock, providing free foreclosure prevention counseling and supporting homeowners like you in more than 200 languages. Call the Homeowner’s HOPE™ Hotline: 888-995-HOPE(4673)