Included in the 2 trillion dollar Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a provision that allows homeowners with government guaranteed loans (Fannie Mae and Freddie Mac) to request up to 12 months of mortgage payment forbearance.

Under the CARES Act  a homeowner may ask for 6 months of loan payment forbearance that is renewable for another 6 months. In other words, a qualified homeowner can go an entire year without making a single mortgage payment.

What exactly is a mortgage payment forbearance?

Well, it simply means that a payment does not have to be made presently, but eventually the skipped payment must be repaid.

How are skipped payments to be paid?

There are basically three options here:

  1. Reinstatement: Make a one-time payment for the amount due.
  2. Repayment Plan: Pay extra each month on the amount due.
  3. Loan Modification: Rewrite the mortgage loan to pay the amount due over the remaining term of the loan.

Other remedies.

In addition to allowing for a payment forbearance, FHA and Freddie Mac loans will also receive the following benefits:

  • Waiving assessments of penalties and late fees,
  • Halting all foreclosure sales and evictions of borrowers living in Freddie Mac-owned homes until at least May 17, 2020,
  • Suspending reporting to credit bureaus of delinquency related to forbearance,
  • Offering loan modification options that lower payments or keep payments the same after the forbearance period.

Not sure if you have a Fannie Mae or Freddie Mac Loan?

Us the Fannie Mae lookup tool and Freddie Mac lookup tools to see if you have a government guaranteed loan.

USDA Rural Housing Development Loans.

A similar loan deferment program is also being sponsored by the USDA home loans.

Contact Your Mortgage Company:

Bank of America
Phone: 1-800-669-6607

Cenlar FSB
Phone: 1-800-223-6527

Phone: 1-800-848-9380

Freedom Mortgage
Phone: 855-690-5900

Lakeview Loan Servicing, LLC
Phone: 1-855-294-8564

LoanCare, LLC

Mr. Cooper a/k/a Nationstar
Phone: 1-855-375-4001


Phone: 1-800-777-4001

PHH Mortgage Services

Phone: 888-820-6474

Wells Fargo
Phone: 1-800-357-6675


Image courtesy of Flickr and sergio santos