Foreclosures during COVID-19 if you have a government-backed mortgage
(Updated July 2021) Have questions about mortgage foreclosure, forbearance or reverse mortgages during COVID-19? Regional Housing Unit Staff Attorney Annie Williams-Neamand developed information to help homeowners who are struggling financially during the pandemic.
Are you behind on your mortgage payments during COVID-19?
No new foreclosures are allowed to be started against people with certain types of government-backed mortgages through at least Aug. 31, 2021.
Lenders of some government-backed loans are also prohibited from starting any ejectment actions (like an eviction for homeowners) or holding any sheriff's sales of homes that were already subject to foreclosure.
What if I have a government-backed mortgage?
If you have a government-backed mortgage, you might qualify for a CARES Act Forbearance (pause in payments). The CARES Act is the Coronavirus Aid, Relief, and Economic Security Act. It helps Americans faced with financial difficulties during COVID-19.
If you cannot afford your mortgage due to the pandemic, you should ask your lender to grant you a forbearance, in which case you may be able to pause making your mortgage payments for up to 18 months. After the forbearance, your lender will work with you on repayment options.
The payments will not be forgiven entirely, but you might be able to “pause” your mortgage payments until you can afford to pay again or for up to 18 months.
How do I know if my mortgage is government-backed?
If you have a loan insured by Fannie Mae, Freddie Mac, the U.S. Veterans Administration (VA), U.S. Dept. of Agriculture (USDA), or (Federal Housing Administration (FHA) loan, your mortgage is most likely government-backed.
If you are not sure what type of loan you have, call your lender and ask for a CARES Act Forbearance anyway. The worst thing that can happen is that your lender says no!
What happens if my mortgage is NOT government-backed?
If your mortgage is not government-backed and you cannot afford your mortgage due to the COVID-19, you need to tell your lender/servicer (the business you send your mortgage payments to) that you have been financially affected by the pandemic and cannot afford to make your mortgage payments.
Your lender still might be able to help you, even though they are not required to by law.
What if I have a reverse mortgage?
If your reverse mortgage is insured by the U.S. Dept. of Housing and Urban Development (HUD), then these protections also apply to you!
To find out if your reverse mortgage is insured by HUD, ask your lender/servicer.
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