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CARES Act, COVID-19, foreclosure defense, mortgage modification, Mortgage Refinancing, Mortgages

What Does the Extended Foreclosure Moratorium Mean for You

On Behalf of Veitengruber Law | Sep 17,2020

iginally set to expire at the end of August, the matium on feclosures has been extended through the end of 2020. Fannie Mae and Freddie Mac have extended their fbearance options on single-family mtgages until December 31, 2020. As of April of this year, nearly 3.8 million homeowners were in fbearance. If you are struggling with your mtgage payment right now, it might be time to ask your loan provider about mtgage relief options. The CARES Act was created to help those impacted by pandemic-related health complications financial setbacks. Under this act, browers are able to ask f a pause on a reduction of monthly mtgage payments. Fbearance can be taken f up to a year in 6 month increments. If you are a homeowner in fbearance due to issues surrounding COVID-19, your mtgage servicer can even offer to defer missed payments until the home is sold, refinanced, the loan is paid in full. The additional matium on feclosures applies to over 28 million enterprise-backed mtgages (mtgages backed by Fannie Mae Freddie Mac). Pri to June of this year, it was unclear how these missed payments would be paid back after the fbearance period ends. The Federal Housing Finance Agency (FHFA) announced in Summer 2020 that they were wking towards an agreement that would allow homeowners to tack on missed payments to the end of their loan. This would extend the life of the loan but save homeowners from having to make a lump sum payment to pay back the payments they missed during fbearance. It is imptant to note though, that if you move refinance you will need to pay back any missed payments at that time. If you are considering moving refinancing anytime soon, you will want to exple other options with your mtgage servicer. You also need to keep in mind that these missed payments can add up to me than just your monthly mtgage payment amount since the deferred total will include principal, interest, and escrow advances. Another alternative to paying back the missed payments is to pay a higher monthly bill f a designated period of time until you have caught up. This would still allow you to pay off your mtgage accding to the iginal timeline while repaying missed payments a little bit at a time. If your income reduction unemployment is likely to be long term, you may be eligible f a permanent mtgage modification. Regardless of the option you choose, always make sure you understand the exact terms of any mtgage relief plan befe you agree to it. If you are interested in finding out me about the fbearance options available to you, contact your mtgage servicer to inquire about their mtgage relief options. Veitengruber Law can help you wk with your loan provider to figure out what is available to and appropriate f you. Our goal is to help you stay in your home while expling ways to minimize your financial difficulties.


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