HUD allows borrowers to delay making a mortgage payment under the Forbearance for Borrowers or COVID 19 National Emergency Program. The deadline to request the COVID 19 Forbearance is December 31, 2020. The borrower will not have to make payments for 6 months. However, this period can be lengthened up to another 6 months or shortened at the borrower’s request. The payments usually come due all at once at the end of the forbearance period.
HUD also has a program called Home Equity Conversion Mortgages (“HECM”) for borrowers with a reverse mortgage. When an HECM borrower defaults on the mortgage, such as by not paying taxes or insurance, HUD requires the mortgage company to call the HECM loan due in full and then to file a foreclosure. Due to the pandemic, HUD has said that HECM borrowers who have defaulted on the mortgage can ask their mortgage company for an additional 6 months before the mortgage company calls in the loan. The key is that borrowers must make this request to the mortgage company by December 31, 2020.
If you are concerned about losing your home to foreclosure, and you need assistance understanding your options, please call South Carolina Legal Services at 888-346-5592 or apply online at www.sclegal.org.