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Mortgage Relief

May 14, 2020
coronavirus mask covering house made of dollar bills

Guide to Coronavirus Mortgage Relief

On April 23rd, Governor Gretchen Whitmer and the Michigan Department of Insurance and Financial Services (DIFS) announced the creation of the MiMortgage Relief Partnership to ensure no one experiencing financial hardship due to COVID-19 will lose their home during this public health crisis.  For many homeowners with mortgages, there is help.  But first, you must assess your situation:

What Options Do You Qualify For?

Mortgage relief options depend on who owns or backs your consumer mortgage.

  1. First, figure out who services your mortgage. This is who you need to contact.
    Your mortgage servicer is the company that you send your mortgage payments to each month. If you don’t know or can’t remember who currently services your mortgage, there are several ways to find out, including looking at your mortgage statement for contact information.
  2. Second, figure out if your mortgage is federally backed.
    Nearly half of the nation’s mortgages are owned or backed by Fannie Mae or Freddie Mac. To look up online whether your mortgage is owned or backed by Fannie or Freddie, click these links:

    Is my loan backed by Fannie Mae?
    Is my loan backed by Freddie Mac?

    To verify whether you have an FHA, VA or USDA loan, find your closing documents (either hard copies or electronic versions) and look for the “Closing Disclosure.” In the upper right of the first page of this document, under “Loan Information,” you’ll see checkboxes indicating your loan type: conventional, FHA, VA or other. If you can’t locate this document, try looking at your monthly mortgage statement or contacting your lender at the phone number listed on the statement.

Borrowers with Mortgages Backed by the Federal Government

If you have a federally backed mortgage, you have two mortgage relief options under the CARES Act:

  • First, your lender or loan servicer may not foreclose on you for 60 days after March 18, 2020. Specifically, the CARES Act prohibits lenders and servicers from beginning a judicial or non-judicial foreclosure against you, or from finalizing a foreclosure judgment or sale, during this period of time.
  • Second, if you experience financial hardship due to the coronavirus pandemic, you have a right to request a forbearance for up to 180 days. You also have the right to request one extension for another up to 180 days. You must contact your loan servicer to request this forbearance. There will be no additional fees, penalties or additional interest (beyond scheduled amounts) added to your account. You do not need to submit additional documentation to qualify other than your claim to have a pandemic-related financial hardship.


If your Mortgage is Backed by Fannie Mae or Freddie Mac 

In addition to the foreclosure moratorium and forbearance, if you are granted forbearance to delay making your monthly payments during this temporary period:

  • You won’t incur late fees
  • You won’t have delinquencies reported to credit reporting companies
  • Foreclosure and other legal proceedings will be suspended
     

FHA, VA or USDA Loans

Aside from the CARES Act, FHA, VA and USDA lenders have been encouraged to help borrowers impacted by COVID-19 use existing mortgage relief programs. This includes special forbearance, the duration of which can vary based on the homeowner’s situation. ​​​​​​Regardless of mortgage type, reach out to your lender to discuss relief options..​​​​​​

If you have a federally guaranteed loan, click here for more information on how to request forbearance or mortgage relief.

If you don’t have a federally backed mortgage, you still may have relief options through your mortgage servicer or from your state.

Borrowers with Mortgages NOT Backed by the Federal Government

Zeal Credit Union has agreed to the MiMortgage Relief Partnership to provide the mortgage relief and financial protections announced by Governor Gretchen Whitmer on April 23, 2020.

If you have experienced a financial hardship due to COVID-19, please contact our Zeal team by calling 800-321-8570 ext. 7299 or emailing homeloans@zealcu.org to learn the details of the relief options available to you.