While a Borrower who receives a COVID-19 Forbearance or other forbearance is responsible for repaying the suspended mortgage payments or the balance of reduced mortgage payments, they are not required to make a “lump sum” repayment for the total missing payments immediately at the end of the COVID-19 Forbearance or other forbearance period.
Following the completion or expiration of the COVID-19 Forbearance or other forbearance period, the mortgage loan servicer must evaluate the Borrower to see what loss mitigation options may be available to reinstate the Mortgage. All loss mitigation options are available through the mortgage loan servicer. Borrowers must contact the mortgage loan servicer to explore their loss mitigation options.
Borrowers may wish to contact a HUD-approved Housing Counseling Agency for counseling on their particular situation. HUD-approved Housing Counseling Agencies may be located by calling HUD’s interactive voice system at 1-800-569-4287; or online at: https://hudgov-answers.force.com/housingcounseling/s/
For additional FHA Policy Information related to a COVID-19 Advance Loan Modification and other COVID-19 Recovery Loss Mitigation Options see:
- Handbook 4000.1 III.A.2.o at: https://www.hud.gov/program_offices/administration/hudclips/handbooks/hsgh