Making Sense of Mortgage Options: One-on-One Guidance Available from HUD-Certified Housing Counselors
- May 14, 2020
- By: Greenpath Financial Wellness
This content was created in part thanks to a grant from Wells Fargo.
Sometimes just knowing the options is the best path forward in times of uncertainty.
As we continue to manage family finances in the face of the continued COVID-19 crisis, what’s important for homeowners with FHA-insured mortgages?
GreenPath’s nonprofit team of HUD-Certified Housing Counselors and NFCC-certified credit counselors are here to help.
We have you covered with advice that connects to the heart of your issues, for those facing debt and other financial challenges. In one-on-one counseling sessions, you will understand all your options so you can feel confident and make informed decisions.
CARES Act Summary
Many of the questions we’re hearing are related to mortgage relief options available to those with FHA-insured mortgages. Here’s a quick summary of the options now available as a response to the crisis:
- CARES Act mortgage payment relief: The U.S. Department of Housing and Urban Development (HUD) offers mortgage payment relief options for single family homeowners with FHA-insured mortgages who are experiencing financial hardship as a result of the pandemic.
- For Seniors: The regulations include an extension period for seniors with Home Equity Conversion Mortgages.
- Forbearance: Per the CARES act, borrowers with a financial hardship who are unable to pay their mortgage due to COVID-19 have options related to forbearance.
- Mortgage servicers are now extending deferred or reduced mortgage payment options – called forbearance – for up to six months and must provide an additional six months of forbearance if requested by the borrower.
- FHA offers a partial claim option used by servicers when the COVID-19 forbearance period ends. The partial claim defers repayment through an interest-free subordinate mortgage that the borrower does not have to pay off until their first mortgage is paid off.
Click here to read HUD’s full announcement of mortgage relief options.
Making Sense of Your Options
In the face of a crisis, you can cut down the confusion by understanding what new options are available, and how they might apply to you.
Note that relief options exist for other mortgages other than FHA mortgages. For help with your specific loan, GreenPath housing counselors are available for free, one-on-one guidance.
HUD-Certified Housing Counselors – We’re Ready to Team with You
GreenPath’s housing counselors are HUD-certified, and we have over 120 who have completed updated certification required by HUD by August 2020. They are specially trained to provide you with tools and information to help navigate the complexity around these options.
With a track record of serving nearly 9 million people during the Great Recession of over a decade ago, GreenPath is ready. Our focus is on helping you maintain homeownership, while guiding you to make informed financial decisions that withstand financial challenges.
Understanding all you need to know about mortgage assist options helps you make more informed housing choices, protect your household, and receive assistance to help avoid foreclosure.
For more info, check out these resources from the Consumer Financial Protection Bureau.