Coronavirus mortgage relief options
If you’ve been financially impacted by the coronavirus situation and are having trouble paying your mortgage, relief options may be available for you. These options may include mortgage forbearance – deferring or reducing your mortgage payments for a limited time.
Forbearance is only recommended for those who cannot afford to keep making their mortgage payments. If you can continue paying your mortgage, it is strongly recommended that you do so for these reasons:
- Mortgage forbearance does not reduce how much you owe, and the total amount of your deferred or reduced payments must be repaid in the future.
- After your forbearance period, you will be required to repay the total of your deferred or reduced payments, plus interest. This may be required to be paid as a lump sum single payment.
- Forbearance will require you to make larger future payments to repay what you owe, and it may extend the length of your mortgage term.
- If you are unable to satisfy the terms of your forbearance, it could lead to foreclosure.
- Entering into forbearance may disqualify you from obtaining a new mortgage in the near future, whether to purchase or refinance a home.
- It may not be possible to receive forbearance a second time, so it should be saved for when you need it most.
If you cannot afford to continue paying your mortgage, forbearance or another form of mortgage relief may be an option. For up-to-date mortgage relief information and advice, please review these resources from the Consumer Financial Protection Bureau:
- VIDEO: CARES Act Mortgage Forbearance: What You Need to Know
- Guide to coronavirus mortgage relief options
For specific advice for your home financing situation, please contact your Draper and Kramer Mortgage Corp. loan officer, or reach out to our Customer Service team at firstname.lastname@example.org or 877-353-8472 for assistance.