Help! I just got a pink slip, how am I going to pay my mortgage??? You may be entitled to some help, mortgage forbearance, or more to the point, deferring payment for a period of time. Of course you will have to repay the amount, and it won’t be tacked on to the end of your loan. Rather when you get back to work you will have to pick up your mortgage payment again plus an additional amount to repay the amount that wasn’t paid. They may also report your mortgage as delinquent and you should check on their specific policy on this.
If you find yourself unemployed (if your partner is on the mortgage too, but they are still employed, they still may give you a reduction or accept no payments for a time) you need to make sure you have a Fannie Mae or Freddie Mac loan. If you are unsure, call your loan servicer and ask. The guidelines rule out assistance if you financed with an FHA, VA, or USDA Rural Housing mortgage. The home must also be your primary residence.
There are very specific rules and regulations. I strongly urge you to contact your loan servicer to find out if you qualify, and always a good idea to discuss loan forbearance with a real estate attorney to understand how it will impact you later on down the road. For some the program will help to keep them from losing their home. The initial time frame allowed is 6 months, in some cases it can be extended up to 12 months.
What is the first thing to do if a job loss is threatening your mortgage payment? Contact your loan service provider immediately, don’t wait until you haven’t made a payment. Ask if Fannie Mae or Freddie Mac owns or has guaranteed your mortgage. If the answer is yes, have them explain the mortgage forbearance program to you, go over the long term effects and ramifications with you. I also suggest you may want to speak with a real estate attorney to understand how this program might affect you in the long run. The initial time frame allowed is 6 months, in some cases it can be extended up to 12 months.
If you lose your job in Connecticut and have a Freddie Mac or Fannie Mae mortgage there is hope. Contact your loan servicer to find out if you can participate in the loan forbearance program and save your home.
Unsure if your mortgage is a Freddie Mac or Fannie Mae mortgage? Check these links out.
If you don’t have a Fannie Mae or Freddie Mac mortgage, you may be able to get help from CHFA’s EMAP program, the Emergency Mortgage Assistance Program or get some advice from the Housing Development Fund’s Foreclosure Intervention Program. Whatever you do, please do not wait. Call before they knock on your door!
If you need to sell your home in Litchfield County give us a call. Even if your home is worth less than what you currently owe on your mortgage, we can help you with a short sale of your home. You can use the contact form here or call us at 203.460.1775 for a confidential interview.
Originally posted at Unemployed in Connecticut with a Fannie Mae or Freddie Mac loan?