{"id":3318,"date":"2020-12-14T05:00:18","date_gmt":"2020-12-14T11:00:18","guid":{"rendered":"https:\/\/nwiloanguy.com\/blog\/5-steps-to-follow-when-applying-for-forbearance\/"},"modified":"2020-12-14T05:00:18","modified_gmt":"2020-12-14T11:00:18","slug":"5-steps-to-follow-when-applying-for-forbearance","status":"publish","type":"post","link":"https:\/\/nwiloanguy.com\/blog\/5-steps-to-follow-when-applying-for-forbearance\/","title":{"rendered":"5 Steps to Follow When Applying for Forbearance"},"content":{"rendered":"

\"5<\/p>\n

If you\u2019re currently feeling the stress of affording your mortgage payment, or if you know someone who is, there\u2019s still time to get help. For homeowners experiencing financial hardship this year, the CARES Act<\/a> provides mortgage payment deferral options, creating much-needed relief in these challenging times.<\/span><\/p>\n

It\u2019s important, however, to understand how forbearance works. It\u2019s not automatic. You need to take action now and apply for the program before these options expire.<\/p>\n

A study<\/a> by the Urban Institute<\/em> determined:<\/p>\n

\n

\u201cApproximately 400,000 homeowners who became delinquent after the pandemic began have forgone forbearance<\/strong> and become delinquent. These<\/strong> borrowers may not know they are eligible for forbearance<\/strong>.\u201d<\/em><\/p>\n<\/blockquote>\n

Thankfully, there\u2019s still time to apply for forbearance, even if you\u2019re just learning about it now. Doing so may be the game-changer you need to stay in your home, just when you need it most. Mike Fratantoni, Senior Vice President<\/em> and Chief Economist<\/em> at the Mortgage Bankers Association <\/em>(MBA), explained<\/a>:<\/p>\n

\n

\u201cThe increase in new forbearance requests may be the result of additional outreach to homeowners who had previously not taken advantage of forbearance opportunities.\u201d<\/em><\/p>\n<\/blockquote>\n

If you need to apply for forbearance but aren\u2019t sure how to begin the process, the Consumer Financial Protection Bureau <\/em>(CFPB) published 5 steps<\/a> to follow when requesting mortgage forbearance:<\/p>\n

1. Find the contact information for your servicer <\/strong><\/h4>\n

Look at your mortgage statement to find the phone number for your servicer (the company you send your mortgage payment to every month). The Consumer Financial Protection Bureau <\/em>encourages you to use the number on your statement to avoid scams.<\/p>\n

2. Call your servicer <\/strong><\/h4>\n

Explain your situation so your servicer can determine your best course of action. Be sure to ask any questions you have about the process.<\/p>\n

3. Ask if you\u2019re eligible for protection under the CARES Act<\/strong><\/h4>\n

The CARES Act protects homeowners with federally backed loans (FHA, VA, USDA, Fannie Mae, and Freddie Mac). In addition, some private servicers are also providing forbearance programs.<\/p>\n

4. Ask what happens when your forbearance period ends<\/strong><\/h4>\n

Depending on the plan available to you, there are different options<\/a> you may be able to consider. Your servicer will help you get a better understanding of what\u2019s available.<\/p>\n

The CFPB also recommends asking questions like:<\/p>\n