Yesterday, Fannie Mae and Freddie Mac announced that homeowners in forbearance could request payment deferrals and add any missed payments to the end of their loan term, without penalty or added interest. That's great news but remember, this doesn't mean you don't have to repay, it just means your loan is extended. It also only applies to the Government-Sponsored Enterprises, not necessarily traditional banks and lenders.
Here are some Highlights:
Freddie Mac will allow a borrower to restore their pre-COVID payment amount and add up to 12 months of missed payments—including escrow advances—to the end of the mortgage term. You won't accrue any extra interest or late fees.
Fannie Mae homeowners will have several options to pay back missed payments. They can roll the payments to the end of their mortgage, pay it in full or set up a repayment plan to gradually catch up.
Effective July 1, mortgage servicers will begin to evaluate homeowners to resolve COVID-19–related hardships for eligibility.
Loan servicers will reach out about 30 days before a borrower’s initial forbearance plan ends to determine what type of repayment plan is needed.
As with everything, own your loan and make sure to stay on top of the process & follow up if you don't hear from someone. There are over 4 million borrowers that filed forbearance so I assume there will be some back log.
Source: Fannie Mae & Freddie Mac