It’s not too late to take advantage of these protections but call your mortgage servicer sooner rather than later.
For some mortgages, the deadline to request forbearance is December 31, 2020. Don’t wait – get the help you need now.
What to do after you enter forbearance
This advice applies to both a CARES Act forbearance and other mortgage relief that you might receive.
- Stop or change auto-payments for your mortgage. If you are having your mortgage payment deducted automatically from your bank account, make sure you make any necessary adjustment to avoid any fees or charges.
- Pay attention to your monthly mortgage statement. Continue monitoring your monthly mortgage statements to make sure you don’t see any errors.
- Keep an eye on your credit. It’s a good idea to routinely check your credit reports in order to make sure there are no errors or inaccuracies. You can check them weekly for free through April 2021. Servicers may report that your account is in forbearance. However, if you were otherwise current on your account and have received relief as defined by the CARES Act, your servicer or creditor is required to report your account as current. If you stop making mortgage payments without a forbearance agreement, the servicer will report this information to the credit reporting companies, and it can have a lasting negative impact on your credit history. If an error has been made, however, you can work to dispute it. Get more information about how to protect your credit during the coronavirus pandemic.
- Your property taxes and insurance should continue to be paid by your servicer if your mortgage has an escrow account, but you may want to confirm that with your servicer. If your mortgage does not have an escrow account, you will be responsible for paying property taxes and insurance payments. You are responsible for making any HOA and condo fees during forbearance. There may be an escrow shortage when you leave forbearance. Discuss with your servicer your potential options.
If you want to talk to a HUD Approved Housing Counselor, you can call 800-435-2261.