Have you fallen behind on your mortgage payments since the COVID pandemic started? There are some government programs that can provide assistance and one of those programs specifically allows you to go into forbearance on your mortgage for a temporary amount of time. If you are going to file for COVID-19 mortgage relief with your lender, it's important to have your path forward figured out before you take action. Here are some important tips to keep in mind.
There Is Likely a Deadline Approaching
Deadlines for filing your first forbearance request under COVID-19 mortgage relief programs have been extended multiple times as the pandemic has continued but these extensions might not continue indefinitely. Your exact deadline could be different based on what kind of loan you have and it's possible the government could allow further deadline extensions before time runs out. But before you do anything, you need to figure out how much time you have left to file your first request and then move with a sense of urgency to get your paperwork in order
Consider Talking to a Lawyer, a Housing Counselor or a Loans & Financing Professional
Because urgency might be key in this situation, you may want to consider retaining either an attorney or a loans and financing counselor that can help walk you through your current situation. Your professional housing counselor will take a look at your situation, figure out if there is an upcoming deadline that applies to you and will help streamline the process of filing.
Consider Additional Extensions or Other Options
While there may be a quickly approaching deadline for filing your first forbearance request, you will if approved be able to request extensions to that first request under current policies. In other words, if you are approved for a three-month forbearance, you could re-apply and ask for another three-month extension. Exact terms will vary and again, it might be best to contact someone who can offer professional advice.
In a worst-case scenario, if you can't pay your mortgage and can't get forbearance to give you a temporary lifeline, you could see if you qualify for a personal loan or talk to your mortgage company and see if they would be willing to work with you in any other way to get you back to current on your mortgage bill. Many lenders, not just the government-backed ones, understand that the pandemic has been hard on people and may be willing to work with you if it means you will eventually pay and not default on the mortgage.
Share17 September 2021
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