The current pandemic has had more than health implications for many Americans. It has also had financial implications. If you have found yourself facing financial hardship during the pandemic, and you carry a mortgage on your home, you may want to look into COVID mortgage modification as a means of providing you with some financial relief during these challenging times.
Mortgage Relief Is for Specific Types of Loans
First, it is essential to understand that COVID mortgage modification is available for specific types of loans. Certain loan programs have more dedicated programs to provide financial relief during this time. If you have an FHA, VA, or USDA loan, all backed up by the government, or you have a Fannie Mae or Freddie Mac loan, also backed by the government, they have established mortgage modification programs available to you.
Even if you don't have any of these types of loans, your lender may still have COVID mortgage modification options that you can explore.
Enjoy An Extended Forbearance
With COVID mortgage modifications, the most common type of relief being offered is forbearance. With forbearance, you generally don't have to pay on your mortgage, or you can pay a smaller modified amount. This relief is offered for a set number of months.
Under normal circumstances, the relief period from forbearance is generally short, such as three months. With the current COVID crisis, however, extended forbearances of a year are available. The exact length available depends on when you ask for the forbearance to begin and if you ask for an extension.
With a forbearance, you will enjoy no or reduced payments for a set period of time. The drawback is that the length of your loan is going to be extended. That way, when things get better economically, you will be able to finish paying back what you owe.
Generally, your payments will go back to normal after your forbearance ends; you will just have extra months added onto your loan to account for the money you were not paying during the forbearance period. Forbearance is designed to allow you to keep your home, not default on your mortgage, and keep your credit score intact while giving you more time to pay off your mortgage.
The most important thing with this is to act quickly. These COVID mortgage modification options are not going to be around forever, so you will want to reach out to whoever is financing your mortgage immediately and see what type of relief options you can take advantage of before this unique opportunity is gone.
Contact a company like Save My Loan, LLC. for more information.
Share17 September 2021
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