According to a report published on Yahoo!, anyone owning a home and facing hardship due to the coronavirus pandemic may be able to push back their mortgage payments for an entire year. The government-sponsored entities of Fannie Mae and Freddie Mac said this week that loan payments could be delayed up to an entire year if you have suffered a substantial loss of income from the COVID-19 pandemic. Fannie Mae and Freddie Mac back millions of mortgages in the United States.
Can You Delay Your Mortgage Because of Coronavirus?
To get relief, you don't have to actually have the coronavirus. If you feel you qualify to push back your payments due to loss of income, you should reach out to your mortgage servicer immediately and let them know of your misfortune. The good news is that this applies to ANY type of property, whether it is a primary residence, investment property, or even a vacation home.
Additionally, this very interesting and unique time will also excuse penalties and late fees that are incurred during these times and further, these delinquencies will not be reported to credit agencies, which will mean your credit score will not be negatively impacted.
Keep in mind that your inability to pay will be verified and checked during this period, so don't think that a “bad month” will automatically mean you can take a year off of paying your mortgage. There will be communication and verification throughout the process to ensure there isn't any abuse to this system.
Very important! It is YOUR RESPONSIBILITY to reach out to your whomever services your mortgage and let them know of your situation.
Foreclosures and Evictions are Delayed 60 Days
If you were in trouble before this whole situation, perhaps you'll benefit knowing that foreclosures and evictions have been delayed for 60 days.
We ask that servicers be responsive to potential requests for assistance from borrowers who may be impacted by COVID-19.
-Kevin Palmer, senior vice president of single-family portfolio management at Freddie Mac.
Suggested Reading: What Happens to Your Credit Score After Foreclosure?
If anyone has any questions about this process, or real estate investing in general, call our office at 954-585-2274, or send us an email through this contact form.
Update: Forbes has posted a link that will track the progress of various types of mortgages and housing situations across the USA. For up to the minute information on this topic, follow this link below and know that Forbes is a very credible sources of information. Again, don't hesitate to call us with any questions.