Mortgages insured by FHA or owned by Fannie Mae and Freddie Mac:
- The borrower must have a COVID-19 related hardship.
- Mortgage payments had to be current or less than 31 days behind when the COVID-19 hardship began.
- Foreclosure sales and evictions are suspended for 60 days as of May 17, 2020. The moratorium applies to the start of foreclosures and to the completion of foreclosures in process. The moratorium on foreclosures does not apply to properties that were vacant or abandoned when the National Emergency went into effect.
- Borrowers can request a “forbearance” – a suspension or reduction in payments – for up to 12 months.
- Toward the end of the forbearance period, servicers must work with borrowers to provide a permanent solution to bring the mortgage current, including review for a loan modification.
- The servicer will not report to the credit bureaus, any borrower who is in an active forbearance plan, repayment plan or Trial Period Plan (prior to a loan modification) as a result of a COVID-19 related hardship.
- Borrowers will not be charged penalties or late fees during the forbearance period.
- Homeowners must contact their mortgage servicer (the entity to which they make their monthly mortgage payment).
- PHFA is offering a 2-month forbearance to borrowers with PHFA mortgages. This is for payments due for March and April. The forbearance period can be extended for 1 month if needed.
- Borrowers will not be charged late fees and will not be reported to the credit bureaus during that time.
- After the forbearance period, borrowers will be reviewed for other options, including a loan modification.
- Borrowers should contact their loan servicer at PHFA to establish the COVID-19 related hardship.
- PHFA is also suspending evictions and foreclosures for 60 days for those borrowers impacted by the virus.. This policy will remain in effect until impacts of the virus subsided.
Mortgages held by banks:
Several banks have announced that customers may request to defer payments on mortgages, home equity loans, and home equity lines of credit.
Customers must contact their bank to determine eligibility.
Some banks are also refraining from negative credit reporting and from charging late fees during the temporary workout solutions they are offering.
Link to the GUIDE TO CORONAVIRUS MORTGAGE RELIEF OPTIONS