COVID-19, Mortgage Forbearance and the Next Steps
In March, the federal government put into law the CARES Act which helped affected homeowners put their mortgage into forbearance. The initial plan allowed homeowners to stop making payments on their mortgage for 3 months without risking a penalty or foreclosure.
As we near the end of the 3 months, many homeowners wonder, what now? The forbearance plan doesn’t erase your debt – it gives you temporary relief. You may make the payments if you can afford them or you can wait, but your credit score won’t drop and your lender can’t assess penalties.