Please note that this is the most up-to-date information we have at the time. Reach out to loan servicers directly for guidance, keeping in mind what forbearance could mean for the borrower, ensuring that they’re clear on repayment terms, amounts, dues dates, etc.
The news regarding the pandemic is changing by the hour and it’s easy to be overwhelmed by the amount of information that’s available. We’ve attempted to cut through the noise by sharing some tips for those who are experiencing financial difficulties and are unable to make their mortgage payment or rent, as well as other financial assistance resources and best practices on how to spot scams.
Mortgage Assistance
“There is a lot of misinformation about whether homeowners should continue making mortgage payments,” said Michelle Bailey, 2020 President for Boise Regional REALTORS®. “The short answer is ‘yes’ to stay current on your loan.”
For those whose income has been impacted by this emergency, financial assistance is available. Ryan Froehlich, 2020 President of the Idaho Mortgage Lenders Association, says “borrowers with questions should contact their loan servicer directly — the company to which you send your mortgage payment to each month.”
Mortgages held by Fannie Mae or Freddie Mac (also referred to as government-sponsored entities or GSEs) may qualify for a loan payment deferment or forbearance. Foreclosures and evictions have been temporarily suspended on GSE backed loans for those borrowers unable to make their mortgage payments due to an employment and/or income change as a result of COVID-19, To find out if your loan is owned by Fannie Mae or Freddie Mac, you can check online at knowyouroptions.com/loanlookup or freddiemac.com/loanlookup, or contact your loan servicer directly.
Even if your mortgage is not backed by Fannie Mae or Freddie Mac, Froehlich still recommends contacting your loan servicer: “Lenders are mostly following the GSE guidance, or local or state guidance as it relates to foreclosure and eviction moratoriums.” But he adds: “It is important for borrowers to understand that with any kind of loan deferment or forbearance that your loan servicer may approve, the payments will need to be made up at later time on the loan.”
If you are approved for mortgage assistance, Bailey shared this caveat: “Please do not stop or reduce your mortgage payments until you have written confirmation from your mortgage servicer to do so.”
If you decide to move forward with a mortgage forbearance plan, ask your servicer how you will be required to pay back the amount owed after the forbearance period. Ask questions like:
- Will you owe the entire unpaid amount in a lump sum once pause period has ended or at the end of the loan term?
- Can the loan term be extended so missed payments are added to the end of the mortgage?
- Will subsequent monthly payments be higher for a period of time to make up the deferred amount?
For more information on mortgage assistance options, please review the resources below:
- Consumer Financial Protection Bureau (CFPB) Mortgage Forbearance Walkthrough
- NAR’s evolving COVID-19 Mortgage and Personal Finance FAQs
- Protect Your Investment: A Guide For At-Risk Homeowners
- Protect Your Credit: Understanding the CARES Act & Your Credit
- Idaho Legal Aid Services Housing and Other Legal Advice Lines
IHFA First Time Homebuyer Assistance Programs
We have received some questions about the availability of first-time homebuyer assistance programs offered by the Idaho Housing and Finance Association (IHFA). To clarify, IHFA has not suspended any of their programs, nor have they changed any of their program requirements. However, you will want to work with your lender to determine which programs and products they are approved to offer at this time. For more information about available assistance programs, work with your lender or contact IHFA directly at (208) 331-4700.
Renters Assistance
For renters seeking relief, the best first step is to talk to their landlord. The non-profit Jesse Tree can help renters who aren’t sure how to discuss their hardship with their landlord, or, if they need additional assistance. Jesse Tree can be reached at 208-383-9486 or jessetreeidaho.org. Other resources that may be helpful for renters are the Intermountain Fair Housing Council’s Navigating COVID-19, Tenant Guidance, and the Idaho Legal Aid Services Housing and Other Legal Advice Lines.
Federal Financial Assistance
At the federal level, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) will provide $2 trillion in financial support for businesses, families, and individuals who have been financially harmed by this emergency. The National Association of REALTORS® published a comprehensive guide outlining key provisions for affordable housing, small business loans, student loans relief, and more. Read more at nar.realtor/political-advocacy/coronavirus-aid-relief-and-economic-security-act.
Be Mindful of Scams
Unfortunately, with all of the news of financial relief options and programs, scammers are reaching out to consumers even more than before.
First and foremost, DO NOT reply to any mail, emails, phone calls, or text messages from companies offering mortgage assistance or forbearance, or, claiming to help you receive benefits from the government. Even if the offer seems to be from your mortgage servicer or a government agency, verify any offers or programs by contacting your mortgage servicer or the agency with using independently verified contact information. Another sign that it’s likely a scam — they want to charge you a fee to “help.”
Again, if you are need of mortgage relief, call your mortgage servicer directly — the company to which you send your mortgage payment to each month — at a phone number that you know is correct, or, reach out through your mortgage servicer’s secure email portal.
With claims that physical checks are being sent out from the government, fake check scams may be on the rise. The Federal Trade Commission (FTC) has information about how to spot and avoid depositing a fake check that could look quite real in addition to other information about coronavirus-related scams.
If you need any other assistance, the best place to start is by calling Idaho’s 2-1-1 CareLine to identify the right state agency for your situation. Also, BRR will continue to update its list of resource for property owners, renters, and landlords at boirealtors.com/coronavirus-response.
