LOUISVILLE, Ky. — The relief is unprecedented from the major mortgage companies.
If you are impacted by the coronavirus crisis, such as being laid off, some lenders are offering a pause on payments.
Mike Jensen, co-founder of FREEandCLEAR.com says the big lenders like Fannie Mae and Freddie Mac are giving those homeowners options never offered before.
“These programs are designed to keep you in your home,” Jensen pointed out.
He says mortgage companies learned from the two-year economic downturn which started in 2007.
“We don’t want to make the same mistake that we made with the Great Recession where a lot of people lost their homes to foreclosure,” Jensen said. “We want to help people out.”
That help includes suspending foreclosures, deferring mortgage payments for up to a year, and loan modification.
And here’s the best part, there will be no penalties or fees and interest will not accrue.
Also, Jensen says, the credit rating for a homeowner with lost income should not change.
Jensen also revealed that proving hardship will not be difficult.
“I don’t think that they want people running around, trying to track down documentation at this time.”
However, there are guidelines to qualify.
Jensen says borrowers can’t have a history of being delinquent on mortgage payments, and once their relief term expires, they have to make their monthly payments in full unless they and their lenders can work out a solution.
Jensen wants people to know that even though their mortgage company is different, their loans may be owned by the big lenders anyway.
That’s why he recommends calling your lender if you need relief due to COVID-19.
“We’re seeing that major lenders are really trying to do what’s right.”
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