Do I still have to make mortgage payments?
Yes. There are no rules allowing people to just stop paying mortgages. If you are going to have trouble making a payment, try to work out a plan with your loan servicer. You may be able to get a forbearance that allows you to suspend payments for an agreed upon time.
Watch out for scams!
Be aware that there are scams posing as aid programs, government programs, class action law suits, and more. Some of these scams can hard to tell apart from a genuine opportunity. Be wary of anyone claiming to be from a third-party loan-modification company, anyone who contacts you out of the blue, and any offer that seems too good to be true. Falling for a scam can put you in debt and even cause you to lose your home.
HUD and its partners put together these anti-scam resources at https://www.hud.gov/program_offices/housing/prevent_loan_scams. It is important to review these resources so you can protect yourself against scam activity.
I heard the federal government has stopped foreclosures. Is this true?
How do I get forbearance?
Forbearance is when your servicer pauses or lessens your payments. Ask your lender or mortgage servicer about this option. Most mortgages are eligible for some form of forbearance.
Many private lenders and servicers will work with you if you ask for forbearance. It is best to ask before you miss any payments.
Servicers of certain types of government-backed mortgages are required to give forbearance upon request. You must initially apply for this forbearance by September 30, 2021, if you have a USDA or VA mortgage. There is currently no deadline for FHFA (Fannie Mae and Freddie Mac) and FHA (HUD) mortgages.
Most government-mandated forbearance periods are for six months or less. However, borrowers with Fannie Mae, Freddie Mac, or FHA mortgages are allowed extensions of up to six months upon request. Be aware, though, that there is a cap on a borrower's total months in forbearance. This cap depends on when you first entered forbearance, so ask your servicer for more details.
To find out if you have an FHA mortgage, call HUD at 1-877-622-8525 or look up your lender on the HUD website. Many reverse mortgages are FHA mortgages.
You can also ask your loan servicer if you have a federally-backed mortgage.
See this FAQ from Lone Star Legal Aid for more details about the foreclosure moratoriums, including tips on how to ask your loan servicer if your mortgage qualifies.
Remember that you must ask your loan servicer for forbearance to get it. If you need a forbearance and Fannie Mae or Freddy Mac hold your mortgage, contact Fannie Mae at 800-232-6643 and contact Freddie Mac at 800-373-3343.
It is also very important to note that if you are not in forbearance, you still owe mortgage payments even you qualify for foreclosure protections. This means that even if the government order applies to your home, you could still lose your house for nonpayment when the pause on foreclosures ends. Your lender or servicer could also report you to credit agencies for missing payments even if it is not currently allowed to foreclose. If you cannot make a payment, it is vital that you try to work out a forbearance agreement with your lender and to get the agreement in writing.
If you have trouble making payments, you can always contact your lender or servicer and ask for forbearance, a payment plan, or some other arrangement to help you stay in your home. Even if the law allows your lender to foreclose, lenders and servicers may still be willing to work with you.
How do I know if my mortgage qualifies for federal COVID-19 protections?
Fannie Mae: You can check to see if you have a Fannie Mae loan at www.knowyouroptions.com/loanlookup or call 800-2FANNIE (800-232-6643).
Freddie Mac: You can check to see if you have a Freddie Mac loan at https://ww3.freddiemac.com/loanlookup/ or call or call 800-FREDDIE (800-373-3343).
Federal Housing Administration: The FHA is a program under the Department of Housing and Urban Development, so you likely have an FHA loan if your loan statement mentions HUD. You can look up your lender or servicer on the Department of Housing and Urban Development's site at https://www.hud.gov/program_offices/housing/sfh/lender/lenderlist to see if your loan servicer is in the FHA list.
Others: If your loan statement does not make it clear whether any of the qualifying federal agencies have an interest in your loan, contact your loan servicer.
How do I ask my lender or servicer to work with me?
If you can’t make your payment, contact your loan servicer as soon as possible to discuss any options that may exist. (Your loan servicer is where you send your mortgage payments.) The servicer might work with you even if your mortgage does not qualify for federal protections.
- If possible, contact your loan servicer before you miss any payments.
- Loan servicers are very busy right now, so be prepared to wait on the phone for a while. In some cases, it might be more efficient to go through their website.
- Tell the loan servicer that you’ve been affected by the COVID-19 pandemic.
- Ask that any late fees be reversed. Ask for “forbearance.” By granting forbearance, the lender or loan servicer can defer mortgage payments and waive late fees. Usually at the end of the forbearance period you must pay the past-due balance in a lump sum unless you qualify for a loan or other change to your mortgage terms. Forbearance is not automatic and not guaranteed.
- Be sure you understand what the forbearance will include. Ask the lender or loan servicer:
- How many months’ payments will you postpone?
- When will the deferred payments be due?
- Will the missed payments be repaid over a long time, rather than all at once? Be wary of owing large lump-sum payments at the end of the forbearance period.
- Will they reverse late fees?
- Will the lender stop any negative credit reporting for the deferred payments?
- Get all lender promises to you in writing.
- Make sure your lender has an updated address where you can receive mail, or request communications through an online account that you can check regularly.
- You may have to submit a written application for assistance. Continue to maintain regular contact with your servicer about any missing items until you receive a letter stating that your application is complete.
You can also use this online tool from Texas RioGrande Legal Aid to help you figure out how to ask your servicer or lender for mortgage relief: bit.ly/TRLAmortgage. The information is also available in PDF format and in Spanish (Spanish PDF).
Does my city or county protect against foreclosures?
See the University of Texas' Entrepreneurship and Community Development's site for details on local foreclosure protections.
Will getting forbearance hurt my credit?
Getting forbearance under federal COVID-19 protections should not hurt your credit rating. Under these protections:
- If you are current on payments and get forbearance, your credit report will show that you remain current until forbearance ends.
- If you are delinquent and get forbearance, your credit report will show that you remain at the same level of delinquency until you catch up on payments or forbearance ends. For example, if you are 30 days late and you get forbearance, your credit report will show you as 30 days late until you catch up or forbearance ends.
- If you are behind on payments but catch up during your forbearance period, then your credit report should update to reflect your account status as current.
Although forbearance does not hurt your credit score, there will still be a note on your credit report that says you received forbearance. This could impact your ability to refinance in the future.
Even if you are protected, be sure to check your credit report often to make sure that it is accurate. Transunion, Experian, and Equifax will all provide free weekly credit reports through April 2021.
For more information about forbearance and credit reporting under the CARES Act, see Enforcing the CARES Act Credit Reporting Protections from the National Consumer Law Center.
Can I get help paying my mortgage?
The Texas Emergency Mortgage Assistance Program has federal funds to help those who cannot pay their mortgage due to COVID-19. These funds are available through local programs.
List of programs and where they operate.
Search by county. (You will need to download the Excel spreadsheet and type your county.)
List of Lenders Offering Assistance in Response to COVID-19
The below private lenders and servicers have offered to work with borrowers. Note that this list is not complete. Contact your lender or loan servicer even if they are not listed here.
- Ally Bank will defer mortgage payment up to 120 days. Interest will accrue, but no late fees. Call 877- 247-2559.
- Bank of America will defer mortgage payments and home equity lines of credit (added to end of the loan). They will also pause foreclosure sales, evictions and repossessions. Call 800-669-6607.
- BMO Harris has flexible payment plans and fee waivers available. Apply at https://www.bmoharris.com/main/personal/financial-relief-request-form/.
- Charles Schwab Bank offers payment forbearance up to 90 days. Go to https://www.schwab.com/faqs#beacon-deck--60341 and scroll down to "Covid-19 Impacts and Other FAQs."
- Chase is taking customer requests for mortgage assistance. Call 1-800-848-9136 or contact them online at chase.com/digital/resources/coronavirus/mortgage. For military activated due to disaster: call military services hotline at 1-877-469-0110.
- Citibank offers a range of hardship programs through our service provider, Cenlar FSB. Please contact them at 800-2CENLAR (800-223-6527) or 855-839-6253.
- Comercia Bank offers deferrals. Call 888-444-9878 for residential mortgage options. See their website for more details.
- East West Bank offers assistance for mortgage customers. Go to their website to learn how to apply. (Go here for small-medium business assistance.)
- Fifth Third Bank offers payment forbearance with no late fees for 90 days on mortgages and home equity lines of credit. Will suspend all foreclosure activity on homes for the next 60 days. Call the Fifth Third hardship line at 866-601-6391.
- HSBC offers assistance with mortgage and home equity loan payments. Call 855-806-4657.
- Huntington National Bank offers help on all consumer loans, including mortgages, auto loans, personal loans, credit cards, and debit cards. Go to their website for information on how to apply.
- M&T Bank offers assistance for mortgage and home equity customers. Go to their website to fill out an application.
- PNC Bank offers help for customers affected by the virus who are encountering hardship can call 1-888-762-2265.
- Regions Bank offers up to 90 days mortgage payment deferrals or extensions. Go to their website for more details.
- Truist (BB&T/SunTrust) offers a minimum of 90 days forbearance. Call 1-800-443-1032 to apply. See their see their FAQ for more details.
- TD Bank offers to defer loan payments and waive late fees. Go to their website for more details.
- Union Bank offers up to three months mortgage payment forbearance, as well as help with small business loans, credit cards, and bank fees. Call 1-800-237-0561 or go to their website for more information.
- U.S. Bank offers up to 90 days mortgage payment forbearance. Go to their site for more information.
- Wells Fargo has offered to suspend foreclosure sales and evictions for residential customers. For payment options, call 1-800-219-9739.
I'm not sure who owns my mortgage loan. How do I find out?
See this article from the Consumer Financial Protection Bureau for tips on how to find out who owns your mortgage.
I asked my lender for forbearance and I didn't like the terms they offered.
Some lenders are more helpful than others. Some, for example, might allow you to go into forbearance and add any missed payments onto the end of your loan term. That is helpful.
Other lenders, though, might demand that you make up multiple payments immediately after (or even before) your forbearance period. Not so helpful.
Remember that this is a negotiation. If you do not like the terms your lender offers you, then you can call them back later and ask if they have decided to give you better terms.
I told my bank I would not try to get forbearance. Is that binding?
Probably not. If you signed a form that said you do not intend to ask for forbearance, you can still ask for forbearance under federal COVID-19 protections -- especially if you have lost your job or have less income than when you originally borrowed.
My forbearance is ending. What will happen?
That depends on your mortgage. Many people will start paying again as normal and make up the missed monthly payments at the end of the loan. Most federal lenders follow this procedure.
If your loan is backed by the Fair Housing Administration, you will have two additional options:
- If you can resume normal payments: If you can resume payments, you will have the option to make a special arrangement that puts past missed payments aside. The missed payments can be repaid later with zero interest when the mortgage ends, including when the home is sold or refinanced. This option is called the COVID-19 Recovery Standalone Partial Claim.
- If you cannot resume normal payments: You may be able to reduce your monthly payments by modifying to a 30-year fixed rate mortgage. The option is called the COVID-19 Recovery Modification.
If your mortgage is backed by the FHFA (Fannie Mae and Freddie Mac), VA, or USDA, you may be able to modify your arrangement to reduce payments by up to 20%. The FHFA also allows borrowers to extend forbearance by six months per request, capped at a total of 18 months.
If you have a private lender and servicer, then your forbearance agreement will decide what happens. Some private lenders might make you pay all missed payments immediately. However, the Consumer Financial Protection Bureau requires mortgage servicers to work with most borrowers to try to avoid foreclosure, so you may be able to modify your contract. Contact your servicer to discuss what options may be open to you.
See this guide from the Consumer Financial Protection Bureau for more information.
For information on foreclosure rules in the time of COVID-19, see Foreclosure Prevention in Light of COVID-19 from Legal Aid of Northwest Texas and the North Central Texas Aging and Disability Center. It is mostly aimed at lawyers, but it could be helpful for anyone facing foreclosure who wants to know about COVID-19 protections.
For a general layperson's overview of foreclosure rules, see the Foreclosure Fact Sheet.
You can find additional information about mortgages and foreclosures during COVID-19 below:
Video: CARES Act Forbearance
Legal experts from Lone Star Legal Aid explain how to put mortgage payments on hold due to COVID-19.
Video: CARES Act Mortgage Forbearance: What You Need to Know (CFPB)
This video from the Consumer Financial Protection Bureau talks about CARES Act Mortgage Forbearance.
Video: Executory Contracts
Some people buy a home through a long-term executory contract instead of taking out a mortgage. Buyers have fewer rights in an executory contract, but there are still protections. Watch this video from Lone Star Legal Aid to learn what rights homebuyers have under executory contracts.