CARES Act Mortgage Forbearance: What You Need to Know
UPDATE: Since this video was released, federal regulators have made it clear that if you receive a forbearance under the CARES Act, your mortgage servicer cannot require you to repay your skipped payments in a lump sum once the forbearance period ends. Also, wait times for most call centers have eased, we encourage you to contact your servicer to learn more.
If you are experiencing difficulty making on-time mortgage payments due to the national coronavirus emergency, forbearance may be an option for you.
Forbearance is when your mortgage servicer, that’s the company that sends your mortgage statement and manages your loan, or lender allows you to pause or reduce your payments for a limited period of time.
Forbearance does not erase what you owe. You’ll have to repay any missed or reduced payments in the future. So, if you’re able to keep up with your payments, keep making them. The types of forbearance available vary by loan type.
Other resources to help you during the coronavirus pandemic
Mortgage relief options
If you can’t make your mortgage payments because of the coronavirus, start by understanding your options and reaching out for help.
Protect your finances
As you prepare for the possible spread of the coronavirus or COVID-19, here are resources to protect yourself financially.
Federally-held student loan payments are postponed and interest has been waived.
Protect your credit
Your credit reports and scores play an important role in your future financial opportunities.