How to delay your mortgage payment without consequences
Due to the coronavirus, many individuals and families are under stress right now from layoffs and business closures. There are many new programs available that make it possible to delay your mortgage payment without consequences. It can be tricky navigating the available programs. Here’s a comprehensive list of resources, along with what you’ll need to do in order to navigate them.
Last updated: 4/29/20
1. Delay your mortgage payment if you have a federally-backed mortgage
The CARES Act was just passed by Congress and has provisions for mortgage forbearance for distressed borrowers for people with federally-backed mortgages.
Details regarding mortgage payments
- You can suspend mortgage payments for 180 days and also apply for an additional 180 days due to financial hardship
- If you are granted relief by being able to skip a payment, make a partial payment or modify your loan, your credit score will not be affected, and late or skipped payments will not be reported to credit bureaus (as long as your loan was, up to this point, not delinquent)
Does this apply to you?
You have a federally backed mortgage if your loan is one of the following:
- Purchased or securitized by Fannie Mae or Freddie Mac
- FHA loan
- VA loan
- USDA loan
- FHA Home Equity Conversion (reverse) mortgage
Click this link to find out who owns your mortgage.
How to navigate it
- Call your mortgage servicer and ask what the details are for their program. There are three types of forbearance 1) delaying payments to the end of the paused period, due in a lump sum, 2) payments pushed to the end of the mortgage period, or 3) reduced mortgage payments. Make sure it’s clear which one they are offering.
- Get the forbearance terms in writing, including type of forbearance, repayment schedule, agreement to not report to credit agencies, and waiving of late fees.
- Watch your credit report and monitor for late fees and get these reversed as soon as you identify them.
More resources:
Fannie Mae’s KnowYourOptions.com: this resource helps you navigate your options if you have a Fannie-Mae backed mortgage to get mortgage forbearance due to covid/coronavirus financial strain.
Freddie Mac has an interactive guide for sustaining homeownership during covid/coronavirus: this resource helps you find options to avoid foreclosure during this difficult time and also states that lump sum payment is not required for Freddie Mac-backed loans.
Details regarding anti-foreclosure and evictions
Foreclosures and evictions will be delayed for at least 60 days
2. Delay your mortgage payment if you have a non-federally backed mortgage
The Housing Policy Council, a trade group that represents many lending banks, had said in March that they were working on a plan to let homeowners have a temporary break in mortgage payments. However, it seems that the response is more like a series of guidelines with no uniform program.
Details regarding mortgage payments
It seems that most mortgage servicers are allowing borrowers to apply for forbearance programs related to covid/coronavirus financial strain. The difference we are seeing between the government-backed vs. non-government backed programs is that with some of the non-government backed bank programs, the forbearance offered is to pay a lump sum payment at the end of the paused period. Some servicers ARE allowing people to tack the missed payments onto the end of the mortgage, but this is not mandated and it appears to be on a case by case basis.
Therefore, it’s critical that you get the details in writing before committing to a program.
Individual companies may have their own forbearance programs in place now, so it pays to call your mortgage servicer (company you make your payments to) and ask what is available.
Does this apply to you?
If you DO NOT have a federally backed mortgage (one purchased or securitized by Fannie Mae or Freddie Mac, or a FHA loan, VA loan, USDA loan, or FHA Home Equity Conversion “reverse” mortgage) then you have a non-federally backed mortgage and would fall into this category.
Click this link to find out who owns your mortgage.
How to navigate it
- Call your mortgage servicer and ask what the details are for their program. There are three types of forbearance 1) delaying payments to the end of the paused period, due in a lump sum, 2) payments pushed to the end of the mortgage period, or 3) reduced mortgage payments. Make sure it’s clear which one they are offering.
- Get the forbearance terms in writing, including type of forbearance, repayment schedule, agreement to not report to credit agencies, and waiving of late fees.
- Watch your credit report and monitor for late fees and get these reversed as soon as you identify them.
Details regarding anti-foreclosure and evictions
It is unclear what is proposed for anti-foreclosure or evictions relating non-government backed mortgage properties at this time.
3. Individual bank programs
A number of banks have made available a process for their customers to get forbearance. These banks may serve either government-banked or non-government backed loans. If you have a government-backed loan, see #1 above for what you are entitled to. If you do not have a government-backed loan, see #2 above, and we will update as the rules unfold.
PNC Bank mortgage forbearance
Here’s the page that explains their process and how to apply.
Bank of America mortgage forbearance
This is their main page for covid/coronavirus payment help. This link has a description of what number to call and what information to collect beforehand for general forbearance programs.
Chase mortgage forbearance
This is their page for financial help due to coronavirus as it relates to your mortgage.
Fifth Third mortgage forbearance
Fifth Third has quite a bit of information on their covid/coronavirus page, including that they offer to their mortgage customers:
“Up to 180-day payment forbearance with no late fees. Mortgage customers in need of assistance have three options at the end of the forbearance period:
- Make a lump sum payment after the forbearance period expires.
- Agree to a repayment plan with our hardship team.
- Be evaluated for loan modification workout options to move missed payments to the back of loan, extending the loan term”
HSBC mortgage forbearance
4. States that provide coverage for late payments for non-government backed mortgages
Some states have set up their own rules that let homeowners financially affected by the coronavirus to delay mortgage payments. If you aren’t covered by the above rules, see what your state is providing in terms of delaying or reducing mortgage payments. Here is what some states are doing:
New York
Details regarding mortgage payments
If you can demonstrate financial hardship because of the coronavirus crisis, you can get 90 days extra time to pay your mortgage.
Does this apply to you?
This applies to you only if your mortgage is serviced by a New York regulated bank (many banks like JP Morgan have a federal, not state charter, for example).
Click this link to find out who owns your mortgage.
How does it work?
NY regulated banks are supposed to tell customers within 10 days (of March 7th, 2020) how to apply for relief.
California
Details regarding mortgage payments
- For borrowers economically impacted by the coronavirus crisis, you can delay your mortgage payments for up to 90 days.
- No negative impact on your credit
- No late fees
Click here for details on how to apply for relief.
New Jersey
Details regarding mortgage payments
- Get up to 90 days of relief if you have been affected by the coronavirus financially
- No late fees
- Can pause or reduce the amount you pay each month
Massachussetts
Details regarding mortgage payments
- A new law requires mortgage servicers to grant forbearances to property owners impacted by the coronavirus-related financial fallout
- The law allows borrowers “180-day forbearance if a homeowner submits a request affirming that they have ‘experienced a financial impact’ because of the global pandemic”
Rhode Island
Details regarding mortgage payments
- 20 banks have agreed to create protections for homeowners
- There will be a 90-day grace period for homeowners to make mortgage payments mortgages due to coronavirus-related issues, and can be extended further
- Late mortgage payments will not be reported to credit rating companies
- No late fees for late mortgage payments
- No foreclosures or evictions for 60 days
- We will be updating this page regularly as more information becomes available. Be sure to bookmark it and check back for the latest updates.
If you are a borrower pursuing one of these relief options and have helpful information, please leave a comment and let us know about your experience.
Need more help? Get our free 14-page guide: “What to do if you’ll miss a mortgage payment?” for step-by-step instructions.
Discover:
- How to take advantage of coronavirus crisis help for homeowners
- How to avoid dings to your credit score
- What to do if your payment is 1, 2 or 3 months late
- Consumer help resources
- How to avoid missed payments altogether
- How to reduce your mortgage payment
- Pros and cons of borrowing money to cover missed payments
- What is foreclosure and how to avoid it
- Legal options to avoid foreclosure
- What to do if you owe more than your home is worth
This article is very helpful and I’m glad you will be keeping it updated. I just spent 6+ hours on hold with my mortgage company trying to get a break on my mortgage and finally had to hang up. What do you do if they are taking NO CALLS?? It feels like a scam.
Hi Bethany, the Consumer Financial Protection Bureau (CFPB) just sent out an email that included info on this issue: “You may need to stay on the phone for a while before the servicer is able to take your call. Loan servicers are experiencing a high call volume and are also impacted by the pandemic, so may be working with staffing and technology limitations.Have your account number handy.” I believe this is absolutely true – many, many people are losing their salaries and trying to get forbearance. However, this does not let your mortgage company off the hook! They should be staffing up to handle demand, especially since it is no surprise that people will be in distress. My recommendation is that you document whenever you are on hold and how long for and also if it seems like your company is trying to avoid honoring forbearance, report them to the CFPB complaint database so there’s a record: https://www.consumerfinance.gov/complaint/.
There is no incentive for loaners to delay payments for up to a year, or any part of it. They bear the loss of income, and the cost of writing instruments to control the delay in THEIR income and their control of the debt. Lump payments at the end of forebearance only help folks that did not need it in the first place. The casting of the delayed payment into a new loan will depend on the interest rate when you want to pay the delayed payment onto the end of the mortgage, and if you have no job at the end of the forbearance, the loaner will decide your future.