Federal CARES Act Gives Homeowners Options to Defer Mortgage Payments

April 21, 2020

Photo credit phototechno/GettyImages

Categories: 

Many homeowners who are struggling to make ends meet during the COVID-19 pandemic may be able to defer mortgage payments for up to 12 months - with no penalty.

Congress included the forbearance provision in the recently approved $2.2 trillion coronavirus relief package that was signed into law by President Trump. 

Bloomberg's Christopher Maloney said it gives most homeowners the option of putting off their mortgage payments for several months. 

"The Cares Act gives every American who has a mortagage, which is taxpayer gauranteed, the option to call the mortgage servicer and request a forebarence" says Maloney.

By law, those who elect to defer payments (for up to one year if the borrower option is exercised) can do so without penalty and without affecting their credit score. 

Homeowners are required to contact their lender to make the proper arrangements.

As Maloney pointed out, the mortgage payments are not forgiven - only deferred.  The borrower still must make up the skipped payments before the home loan is paid in full.

LISTEN NOW on the RADIO.COM App
Follow RADIO.COM
Facebook | Twitter | Instagram