While forbearance is one of the most common options when you cannot make your monthly payment, payment deferral is now being offered to homeowners once they have resolved their COVID-19-related hardship. Check out some of the details of the COVID-19 mortgage payment deferral below.
COVID-19 Mortgage Payment Deferral
The recently announced COVID-19 Payment Deferral solution returns a homeowner’s monthly mortgage payment to its pre-COVID amount by adding up to 12 months of missed payments to the end of their mortgage term without accruing any additional interest or late fees. This will ensure your mortgage is current once you are back on your feet and when other options, such as a repayment plan, are not feasible.
Who is Eligible for COVID-19 Mortgage Payment Deferral?
COVID-19 Payment Deferral will be available to homeowners with Freddie Mac loans starting July 1, 2020, at which time your servicer will begin evaluating your eligibility. Your servicer will contact you about 30 days before the initial forbearance plan will end. This is to determine which Freddie Mac assistance program is best or if there is a need for additional forbearance.
Contact Your Loan Servicer Today
If you are experiencing financial challenges due to COVID-19, contact your loan servicer – the company that you send your monthly mortgage payments to – so you can explore which of Freddie Mac workout options is best for your situation.
For more information and full details about “Understanding Payment Deferral During COVID-19” please visit Freddie Mach website here.