A number of provisions and protections are included in the stimulus package that was recently signed into law. Many states and municipalities have already made changes that affect consumers. This act codifies mortgage forbearance into law.
Any borrower with a federally backed loan (Veterans, FHA, Department of Agriculture) or a loan purchased and securitized by Fannie Mae or Freddie Mac can request forbearance from their loan servicer. The key is to this protection is that the forbearance must be requested by the borrower and the terms must be agreed upon by both the loan servicer and the borrower. The forbearance period can extend up to 180 days. As well, no fees, penalties or interest beyond what is normally scheduled will be assessed or will accrue to the borrower’s account.
The only proof a borrower needs to provide the loan servicer is their attestation to a financial hardship caused by COVID 19. Given this protection, borrowers who need assistance should contact their loan servicer and open a dialogue.
Please see these additional resources for Phoenix-area businesses, workers, and residents relating to the Coronavirus health emergency: https://www.phoenix.gov/resources.
