Major Mortgage Lenders Suspending Foreclosures and Evictions Due to COVID-19
As a certified HUD counseling agency, the Chicago Urban League is sharing this important message with our Housing and Financial Empowerment Center clients and anyone currently facing foreclosure or eviction.
Due to the spread of the coronavirus, the Department of Housing and Urban Development (HUD/FHA Loans), Fannie Mae and Freddie Mac (private mortgage investors) announced that they are suspending foreclosures and evictions for at least 60 days.
Lenders are announcing additional reliefs for homeowners, as well.
Bank of America announced that their mortgage, home equity and car loan customers could request to defer their payments during the crisis. Bank of America is referring to loans they themselves have invested in and have not sold – otherwise known as Portfolio loans.
If you are in danger of falling behind on your mortgage payments, FIRST check with your Lender to find out what options are available to you.
Your options will depend on who backs your loan (who the investor is).
An option that you may be offered is a Forbearance. With a Forbearance, the lender/servicer will either allow you to make no payments or make reduced payments for a specific period – say 3 months. At the end of the Forbearance period, the missed payments may need to be paid in a lump sum or they may be added back on to the loan.
When discussing your options with your lender, ask questions. Be sure that you understand the options that are given to you.
See the link below for a post created by the collaborative efforts of HUD/FHA, the Department of Veterans Affairs, Department of Labor, Fannie Mae, Freddie Mac, and members of the mortgage industry regarding loan workout solutions:
Below is the link to the HUD.gov page describing “Loss Mitigation Services for FHA Homeowners”:
The link to Freddie Mac’s workout Options is:
Fannie Mae’s Link to their workout options page is: