What is the CARES Act Mortgage Forbearance:
In March 2020, the CARES (Coronavirus Aid, Relief, and Economic Security) Act has been passed to offset the economic impact of the COVID-19 pandemic, which grants homeowners a mortgage forbearance to suspend government-backed mortgage payments if they have difficulty in making payments on time. The forbearance will be granted up to 180 days and must be extended up to another 180 days at the borrower’s request before the initial forbearance ends.
How to get a Mortgage Forbearance Extension:
As specified in the Cares Act that “such forbearance shall be granted for up to 180 days, and shall be extended for an additional period of up to 180 days at the request of the borrower”, homeowners simply need to make phone calls, email or visit the page of their loan servicers and get the forbearance extension as long as their mortgage loans are federally backed. Written documentation of confirmation from your loan servicer is preferred to guarantee that you know clearly about the terms and details of the forbearance extension. Though loan servicers have the responsibility to inform homeowners before the forbearance expires, they are likely to fail to do so. Therefore, borrowers should make sure to take the initiative to get in touch with the servicer before the initial period of forbearance ends.
For homeowners on private lender mortgage loans, rules and conditions may differ. Homeowners should contact their loan servicer and local government to make sure what are the options available for them. Official websites are recommended in that latest updates of information and policy will be posted on the page.