City encourages eligible homeowners to apply for mortgage assistance
The City of San Marcos is encouraging homeowners eligible with Federal Housing Administration-insured family mortgages who have been affected by the coronavirus pandemic to apply for the FHA’s COVID-19 Special Forbearance of Mortgage Payment.
The city said all homeowners with FHA insured loans can apply for foreclosure without penalty due to the COVID-19 pandemic.
A COVID-19 forbearance is not a remission of payment. The city said qualified homeowners can temporarily reduce or suspend monthly mortgage payments for up to six months, but must pay any reduced or suspended payments in the future. A lump sum payment is not required at the end of the forbearance period and payments can be staggered over time.
The federal moratorium on foreclosures and evictions remains in effect until July 31, 2021. According to the US Department of Housing and Urban Development, more than 300,000 borrowers are at least 60 days behind on their mortgages and could benefit assistance with abstention.
Qualified homeowners should request COVID-19 forbearance assistance from their mortgage agent by September 30, 2021. When working with their mortgage agent, homeowners should indicate that a COVID-19-related issue requires assistance from abstention. Documentation of the event is not required.
Most homeowners with other types of loans can also apply for mortgage relief. You can find more information about the online support options at: www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/
For more information on COVID-19 mortgage forbearance, contact the FHA Resource Center at 1-800-225-5342 or visit www.hud.gov/coronavirus/homeowners.
Information provided by the City of San Marcos