Homeowners facing financial hardship because of the coronavirus pandemic could delay their mortgage payments for up to a year.
Fannie Mae and Freddie Mac, the government-sponsored enterprises that back millions of mortgages, this week said loan servicers could suspend payments for up to 12 months for homeowners experiencing a loss of income due to the outbreak of COVID-19. The most important word here is “COULD” – You must call your servicer for permission.
The forbearance period excuses any penalties or late fees against borrowers, and the delays in payment would not be reported to credit agencies, according to Fannie and Freddie.
“The last time this happened, in the recession, this was absolutely negatively impacting people’s credit scores as their payments were derogatory,” said Scott Sheldon, senior loan officer at Sonoma County mortgages.