Zion Credit Club

Coronavirus: Homeowners can delay mortgage payments up to 12 months



Dhara Singh

Yahoo Money

March 20, 2020, 4:22 pm

Homeowners facing financial hardship because of the coronavirus pandemic could delay their mortgage payments for up to a year.
Fannie Mae and Freddie Mac, the government-sponsored enterprises that back millions of mortgages, this week said loan servicers could suspend payments for up to 12 months for homeowners experiencing a loss of income due to the outbreak of COVID-19.
The forbearance period excuses any penalties or late fees against borrowers, and the delays in payment would not be reported to credit agencies, according to Fannie and Freddie.

“The last time this happened, in the recession, this was absolutely negatively impacting people’s credit scores as their payments were derogatory,” said Scott Sheldon, senior loan officer at Sonoma County mortgages.



Close-up of realty sign from Century 21 in front of home for sale in the San Francisco Bay Area, San Ramon, California, December 16, 2019. (Photo by Smith Collection/Gado/Getty Images)
Servicers should also offer other payment relief options like loan modifications, typically reserved for natural disasters. Fannie and Freddie also suspended all foreclosure sales and evictions for 60 days.

Even if you've missed a payment, or experienced a financial hardship. 😟 Don't let your personal credit get out of control. There are solutions and options for saving 💰 by improving your credit score. Contact us: 866-822-8393

Bad Credit Card Debt Is on the Rise Red flags are flying in the credit-card industry after a key gauge of bad debt jumped to the highest level in almost seven years.

Do you really know what goes into your credit score? 🤔
Take a read on Investopedia for a solid foundation. 📖
We can assist by leveraging the FRCA for rapid results! 🧐

Credit Score A credit score is a number ranging from 300-850 that depicts a consumer's creditworthiness. The higher the credit score, the more attractive the borrower.