For homeowners who are struggling with their mortgage payments, there is good news: The United States Federal Housing Administration has, once again, extended mortgage forbearance protection. This means that homeowners can request an extension on their forbearance, giving them the opportunity to temporarily delay making payments. These protections are available in every state in the country, including Michigan.
What does this mean?
Mortgage debt is one of the most expensive forms of debt in the country. It is also one of the most important forms of debt that most people carry.
Mortgage forbearance began in a series of federal actions passed in March 2021. It was then extended with the passage of the CARES Act before being extended, yet again, by the FHS. Forbearance means that homeowners can opt to not pay their mortgage, with no financial penalties, until Sept. 30, 2021. However, it isn’t automatic. Homeowners still have to apply for this forbearance.
There’s more good news for people who need it: Interest won’t accrue, and homeowners won’t need to pay back missed payments in a lump sum. Forbearance basically means a homeowner is hitting pause on their mortgage.
How can you apply for mortgage forbearance?
If you have any trouble applying for this mortgage debt, you can always reach out for assistance. A number of law firms and non-profits are spending time and energy helping people collect the relief that they are entitled to.
Mortgage forbearance exists in order to help people get the aid that they need. If you need help, reaching out may go a long way to help you get your finances and life back on track.