Forbearance allows troubled mortgage borrowers to delay payments.
If you have a federally-backed mortgage, you simply need to contact your lender and let them know you won’t be able to pay your mortgage bill due to the current public health crisis. Lenders are required to approve forbearances regardless of your delinquency status.
Additionally, you won’t need to provide documentation such as costly medical bills or evidence of a job loss to prove your hardship when you apply, although you will want to demonstrate it later.
Through the CARES Act, you have the right to request forbearance for up to 180 days, with the possibility of another 180 days if you’re still under financial distress. As part of the relief program, you will also be given a mortgage payment reduction option, where future make-up payments will be spread out over 12 months or added to your mortgage payment once the reduction period is over.
As of March 18, the law also includes a foreclosure moratorium of at least 60 days which prohibits lenders and services from taking foreclosure-related eviction action during this period.
WHERE is forbearance prevalent? New York and New Jersey, of course. They lead the nation in COVID-19 cases as well.
Forbearance is NOT forgiveness, just a temporary restructuring of mortgage debt.
The face of forbearance, NY governor Andrew Cuomo (former HUD Secretary under Clinton).