Many of you have inquired about guidance for Borrowers who may be experiencing hardship due to circumstances surrounding the spread of COVID-19. Under the direction of FHFA, Freddie Mac and Fannie Mae they have released guidance to impacted borrowers. Specifically:
- Credit Reporting: Servicers must not report to the credit agencies a Borrower who is on an active forbearance, repayment, or trial period plan.
- Forbearance Plans: Servicers may approve forbearance plans for all Borrowers who have COVID-19 related hardship, regardless of property type.
- Loan Modifications: Servicers must conduct modifications on Borrowers impacted by COVID-19 related hardship as long as the Borrower was current as of the date of the national emergency declaration on March 13th, 2020.
- Foreclosure: Servicers must suspend all foreclosure sales for the next 60 days. Note this does not apply to properties that are vacant or abandoned.
Although Borrowers will not have gone delinquent at this point, if you are concerned about making your mortgage payments due to job loss or reduction in hours, please reach out directly to your Mortage servicer provider to complete the required paperwork as soon as possible!
Contact me if you have any questions or any real estate needs, We are still here for you and our community.
In the mean time stay healthy, happy and hopeful that we will all get through this together!