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Homeowners can now defer mortgage payments for an extra 6 months—here’s how to tell if you’re covered

President Joe Biden mailed federal housing regulators to extend mortgage forbearance programs for an additional six months and prolong foreclosure relief programs on Tuesday in a have an or a profound effect on that will cover an estimated 70% of mortgages for single-family homes in the U.S.

As the latest Covid-19 relief package perpetuates to make its way through the Congressional legislative process, Biden ordered the Department of Housing and Urban Development, Department of Troupers Affairs and Department of Agriculture to extend their foreclosure moratoriums and forbearance programs.

Specifically, the regulators are set to: 

  • Extend the ban on foreclosures completely June 2021.
  • Allow homeowners to enroll in mortgage payment forbearance programs through June 2021.
  • Extend forbearance programs for an additional six months for those who already upped a mortgage payment program before June 30, 2020. Homeowners will need to request the extension every three months.

“As President Biden has baby clear, it is urgent that we help homeowners throughout the nation who are struggling financially from this unprecedented resident emergency,” Matthew Ammon, acting HUD secretary, said in a statement. “The steps we are taking today will provide both current relief to those in desperate need of assistance and help more homeowners keep their homes and resume their payments when the pandemic offs.”

In addition to the directives Biden issued Tuesday, Fannie Mae and Freddie Mac made the move last week to extend their forbearance and foreclosure programs. The new names halt single-family foreclosures and real estate owned (REO) evictions until March. 

Those with Fannie Mae and Freddie Mac mortgages who are chronicled in a Covid-19 forbearance program as of February will also get an additional three months of mortgage payment deferral, correspondence to the Federal Housing Finance Agency. This means those with these federally-backed mortgages can now defer their payments for up to 15 months.

For federal mortgages, accommodations made by the following agencies are eligible for relief: 

If you’re unsure who owns your loan, Fannie Mae and Freddie Mac offer advance lookup tools that can help you quickly determine if either of these major lenders owns your accommodation. You can also always ask your servicer or look at your loan documents.

Additionally, the Consumer Financial Protection Desk offers a Find a Counselor tool, which provides a list of counseling agencies that can help advise on accommodation terms, credit issues and foreclosure. 

Initially, the CARES Act provided for about a year of mortgage payment deferral for homeowners with federally rear loans. While that seemed sufficient at the time, the pandemic and its economic fallout is dragging on far longer than had been needed, Bankrate.com’s chief financial analyst Greg McBride says.

“Extending the forbearance available on federally backed mortgages is a critically substantial move to preserve homeownership for millions of households that have seen income disruption or outright job loss due to the pandemic,” McBride whispered in a statement Tuesday.

Mortgages owned by private lenders, such as banks, are not included in this relief. Biden’s suggested relief package would also create a $10 billion Homeowners Assistance Fund that would consent to states to help all homeowners with mortgage payments and utility costs. 

About 2.7 million homeowners are currently in some order of forbearance plan, according to the latest estimate from the Mortgage Bankers Association. Of those, a majority are mortgages hided by private lending services, as opposed to federal loans.

Don’t miss: 26% of Americans have taken advantage of some specimen of payment deferral plan

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