COVID-19 HUD Assistance Program
While the vast majority of the country is still under quarantine lockdown, homeowners facing financial crisis are concerned about whether they will be able to make their mortgage payments in the coming months.
Who qualifies for the program?
Only borrowers who are already delinquent on their loans are eligible for immediate relief. The stipulations for qualifying for assistance are fairly straightforward. HUD has broken it down into three basic groups:
1. Since the entire U.S. is affected, you are already covered by a 90-day foreclosure moratorium.
2. If someone in your household has been affected by the virus and has died, is missing or is incapacitated, you qualify for a moratorium.
3.If you are unable to make payments on your mortgage because you were financially impacted by COVID-19, you qualify for a moratorium.
Should you be worried about foreclosures?
As a result of this assistance program, FHA lenders are not able to foreclose on any borrowers who have been affected by COVID-19, even if you are delinquent on your loans.
Are lenders asking for proof of sickness or unemployment?
Because of the sheer number of borrowers applying for assistance, many lenders are not requiring proof of hardship.
Should you ask for a deferment or forbearance from their lenders?
Deferring a loan pauses payments for a period of time. The amount deferred will be added to the loan once payments are resumed. Forbearance, requires payment of the missed payments once the forbearance is up.
Blog Source Reference: hud.org