NEW FHA Mortgage Forbearance Options – No Payments for up to 1 year
This is my latest update on FHA Mortgage Forbearance options that were just released today for those affected by covid-19. The Department of Housing and Urban Development announced Thursday that the Federal Housing Administration is rolling out a “tailored set of mortgage payment relief options” for FHA mortgage borrowers who are being affected by the coronavirus.
#RealEstate #RealEstateMarket #Coronavirus
New videos 3 times per week on Real Estate, Mortgage, Home Buyer Tips and Home Seller Tips – Subscribe for More Real Estate Tips and Real Estate Information –
What is a mortgage forbearance?
A mortgage forbearance agreement is an agreement made between a mortgage lender and delinquent borrower in which the lender agrees not to exercise its legal right to foreclose on a mortgage and the borrower agrees to a mortgage plan that will, over a certain time period, bring the borrower current on his or her mortgage.
How will the FHA mortgage relief work?
In addition to special COVID-19 forbearance, FHA is also rolling out a new program (COVID-19 National Emergency Partial Claim) that will allow borrowers to hold off on paying the full amount of their forbearance period until their mortgage is paid off.
Borrowers are given an interest-free ( I mis-stated this in the video) subordinate mortgage that they do not have to pay off until their first mortgage is paid off.
Who can qualify for mortgage forbearance?
Borrowers with a financial hardship that makes them unable to pay their mortgage due to the COVID-19 National Emergency, mortgage lenders/servicers must extend deferred or reduced mortgage payment options – called forbearance – for up to six months, and must provide an additional six months of forbearance if requested by the borrower,” HUD and the FHA said Thursday.
FHA is also rolling out a new program that will allow borrowers to hold off on paying the full amount of their forbearance period until their mortgage is paid off.
Connect with me:
B L O G ➳
F A C E B O O K ➳
I N S T A G R A M ➳
Other videos you might find helpful:
Mortgage Forbearance Update – What programs are being offered –
What is Mortgage Forbearance – Can I qualify due to COVID-19? –
Coronavirus Real Estate Update – Can you close escrow? –
Are interest rates going up or down –