Clients who are struggling financially because of the pandemic may look to you for advice if they can’t pay their mortgage.
Keep up on mortgage relief options, so you’re prepared to guide them to appropriate resources.
For instance, thanks to the Coronavirus Aid, Relief, and Economic Security (CARES) Act, homeowners with government-backed mortgages (Fannie Mae, Freddie Mac, HUD, VA, and USDA) can request up to a 360-day payment forbearance without proof of hardship. They’ll incur no additional fees, interest, or penalties for the forbearance.
Also, talk with clients about how they can set themselves up for a brighter financial future by refinancing their mortgages and tapping rates that are at near historic lows.
If they’re in Covid-19 forbearance, your clients may think they’re ineligible for refinancing, but the Federal Housing Finance Agency (FHFA) has said that borrowers who have Fannie Mae- or Freddie Mac-backed loans do have an opportunity to refinance their mortgages.
As long as they’ve reinstated their mortgage and made three straight months of payments under their repayment plan, payment deferral option, or loan modification from their missed payments, they’ll be allowed to refinance, according to FHFA.
You can walk clients through a mortgage refinance calculator (https://bit.ly/3elK1qB) to see how much they could save each month.
Here are some forbearance resources to share:
- AARP: https://bit.ly/2LJqAf2
- Fannie Mae: https://bit.ly/36gMWOk
- Freddie Mac: https://bit.ly/3g81F2C
- National Association of REALTORS® : This guide https://bit.ly/3bH8ncE from NAR’s Homeownership Matters outlines the basics and includes information about forbearance and loan modifications.