A MarketWatch article shares insights from 995Hope’s parent organization, the national nonprofit GreenPath Financial Wellness.
A recent article looks at the options for those struggling with mortgage who don’t think they qualify for pandemic-related payment relief. The advice? Don’t despair. As a start, take steps to get back on track.
First, pin down who owns your mortgage.
Call your mortgage servicer — the company you pay each month — and ask who holds the loan. You can also use tools provided by Fannie Mae and Freddie Mac to determine whether one of these federally chartered mortgage giants owns your loan.
If your mortgage is backed by the federal government, or by Fannie or Freddie, you may qualify for up to 18 months of total forbearance, and you’re protected from foreclosure until June 30, 2021.
If your loan isn’t in this category, that “doesn’t mean there isn’t relief” available to you, says Kristen Holt, CEO of nonprofit financial counseling organization GreenPath Financial Wellness. 995Hope is an affiliate of GreenPath.
Some servicers are trying to offer homeowners with privately held loans the same options available to federally backed borrowers. Contact your servicer and ask about temporary payment reductions or suspensions and other relief options. If you’re not sure who services your loan, search the Mortgage Electronic Registration Systems site.
A housing counselor approved by the U.S. Department of Housing and Urban Development can help find solutions for borrowers who aren’t getting the answers they need from servicers and determine whether any state-level orders, or other guidance, provide additional protections. You can find a local housing counselor via an online tool provided by the Consumer Financial Protection Bureau.