Do you have a loan that is not backed by the federal government and wondering about the mortgage forbearance process? Can you do forbearance on a non federally backed loan? How does it work? In this video, we discuss non federally backed mortgages and what we currently know about the forbearance options they are offering.
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What is a non federally backed mortgage?
It is a loan not backed by one of the government agencies like Fannie Mae, Freddie Mae, FHA, VA or USDA.
If your loan is not federally backed, contact your loan servicer or state or local government offices to find out what options you have.
Do Non federally backed loans follow the same forbearance guidelines that are mandated by the CARES Act?
No, not necessarily. Federal regulators believe most non-government-backed lenders and servicers will adopt policies similar to those mandated by the CARES Act. To find out, contact your loan servicer, ask what programs they have in place to help homeowners impacted by the coronavirus outbreak and follow any instructions you are given.
Although the CARES Act does not require private lenders to offer relief, if you and your lender come to any type of loan modification (loss mitigation) agreement, the law regarding not reporting reduced or paused payments to credit bureaus does apply to you
How to Find Out If Your Loan Is Federally Backed
Step 1. – Call your mortgage lender/servicer. Your servicer is required to tell you who owns your mortgage and provide you with the name, address, and phone number of whoever owns your mortgage.
Step 2. – Check online. Use loan lookup tools provided by Fannie and Freddie to find out if either of those two government-backed providers own your mortgage.
Step 3. Check the Mortgage Electronic Registration Systems website to find your servicer if you don’t know who that is.
Mortgage Electronic Registration Systems (MERS) – https://www.mers-servicerid.org/sis/c…
If you have additional questions about USDA mortgage forbearance, please comment below or contact me directly.
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