If your mortgage is owned by Fannie Mae or Freddie Mac, you may have other options like repayment plans or lowered monthly payments.
The Federal Housing Finance Agency said Monday that borrowers benefiting from forbearances on their mortgage payments, which allow them to skip mortgage payments for a set period of time, won’t be required to make a lump-sum payment at the end of their forbearance plan. So far this only applies if your loan is owned by Fannie Mae or Freddie Mac. “During this national health emergency, no one should be worried about losing their home,” said Director Mark Calabria. “No lump sum is required at the end of a borrower’s forbearance plan for Enterprise-backed mortgages.”
While homeowners who faced difficulty making their mortgage payments have benefited from forbearance plans, they faced uncertainty as to whether they would need to make large balloon or lump-sum payments at the end of their plan. Instead, they will have options such as repayment plans or lowered monthly payments.
Freddie Mac CEO David Brickman made the following statement Monday morning: “Simply put, if you are a homeowner seeking forbearance and Freddie Mac owns your loan, you are never required to make up missed payments in a lump sum. Our policies offer a number of options to bring borrowers current, including repayment plans, resuming normal payments or lowering your monthly payment through a modification. We encourage homeowners facing hardship to work with their servicer to identify the plan that’s appropriate for their unique situation.”