Making Sense of Pandemic Homeowner Relief
Juan Quintero, a 56 year old homeowner from Brooklyn, fell into mortgage default after he experienced a loss of income due to the coronavirus pandemic. He had used his savings to stay afloat for several months but eventually ran out of money.
When he applied for a loan modification from his servicers, he was denied due to a lack of income.
But then he contacted Cypress Hills LDC, a provider with the Homeowner Protection Program (HOPP), for help. Housing counselors with the community-based organization researched his options and encouraged Quintero to apply for his servicer’s forbearance plan while he searched for new employment.
If you’re struggling to make mortgage payments because of the coronavirus pandemic, you might also be trying to make sense of relief options available to you. States and the federal government have both imposed protections for homeowners during this crisis, but understanding them can be a challenge.
Here are just some of the protections in place:
Federally-backed mortgages will allow you to remain in a forbearance plan until June 30th, 2021. (Find out what kind of mortgage you have).
If you have a mortgage through Fannie Mae or Freddie Mac, you can also delay payments and receive an extension for up to 15 months. If you’re unsure if you qualify and have difficulty making payments, contact your lender.
Forbearance periods for multi-family mortgages backed by Fannie Mae and Freddie Mac are extended to March 31, 2021.
Keep in mind that if you are currently in a forbearance plan and need more time to make payments, you will need to contact your lender. Your forbearance will not automatically renew. And if you don’t have a government-backed mortgage and have homeowner-associated debt from insurance costs and taxes, you may be at risk.
Thankfully, more relief is on the way, after President Biden signed into law the American Rescue Plan, which includes nearly $10 billion for homeowners who have been hard-hit by the pandemic.
There are steps you can take to protect yourself and your home right now. First of all, it’s important to keep making mortgage payments and to contact your lender if you’re in trouble. They may have options for you, such as forbearance, which is a temporary pause on payments. Second, talk to a housing counselor, a professional trained to help homeowners like you.
Finally, watch out for scammers who ask for upfront fees or ask you to sign documents that could be forged.
For trusted help, call HOPP, backed by the New York State Attorney General’s Office, at 855-HOME-456 (855-466-3456) for a referral to a HUD-approved housing counselor or legal service provider in your community at no cost to you.