Skip to main content

Because of the Coronavirus, many people are facing financial challenges, especially paying their mortgage. If you’re unable to make your mortgage payments, you could lose your home to foreclosure. Federal lenders and some private lenders are offering borrowers temporary help, like stopping or delaying foreclosure or modifying the mortgage. But these measures don’t apply to everyone. If you need help, research the options available to you for getting through these tough times. These tips can help:

Last year, a new federal law, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, created two protections for some borrowers. The first is a temporary suspension — called a moratorium — of foreclosures and it runs through June 30, 2021 (for mortgages backed by Fannie Mae, Freddie Mac, the Department of Housing and Urban Development (HUD) (FHA mortgages), Department of Agriculture (USDA mortgages), and Department of Veterans Affairs (VA mortgages)).

The second is a right to forbearance. That means you can ask your servicer to reduce or suspend your mortgage payments for a certain period. If you’re struggling to make your federally backed mortgage payments because of the pandemic, payment forbearance may still be available. To learn more about your relief options and deadlines, visit consumerfinance.gov/housing, the federal government’s centralized resource for information from the Consumer Financial Protection Bureau, HUD, the VA, and USDA.

First, figure out if your mortgage is federally backed. If you don’t know, you can call your mortgage servicer or follow the links below. You can get your servicer’s contact information from your billing statement. Contact your mortgage servicer to find out what other help is available to you.

More than half of U.S. mortgages are backed by Fannie Mae or Freddie Mac, and these mortgages count as federally backed.

Fannie Mae

Look up whether your mortgage is owned by Fannie Mae

(800) 232-6643

Freddie Mac

Look up whether your mortgage is owned by Freddie Mac

(800) 373-3343

 

If your loan is backed by HUD, USDA, or the VA, you also may be eligible for relief.

2. Contact your servicer no matter what type of mortgage you have. Tell them your situation and ask what options are available to you. Even if your mortgage is not federally backed, you may still qualify for other help. If you’re considering forbearance, keep in mind that it is not loan forgiveness, and ask your servicer what happens after the forbearance ends. Your servicer should be able to tell you if it will extend the loan term so you can make the missed payments later, if your monthly payments will go up to make up the difference, if you will owe the entire unpaid amount in a lump sum, and how forbearance could affect your credit.

3. Need advice? Contact an approved counselor. Go to the Department of Housing and Urban Development’s (HUD) list of approved housing counseling agencies to find a counselor in your state who can explain your options. Consider contacting the Homeownership Preservation Foundation (HPF) at 888-995-HOPE. HPF is a nonprofit organization that partners with mortgage companies, local governments, and other organizations to help consumers get loan modifications and prevent foreclosures.

4. Check what help is available where you live. Your state may offer additional support. Some states have frozen foreclosures. Find your state government’s website and look around for the latest updates on help for borrowers.

5. Scammers follow the headlines. It’s tempting to hire a company that says they can get a change to your loan that will reduce your monthly mortgage payment or take other steps to save your home. Unfortunately, many companies use half-truths and even outright lies to sell their services or they make promises but don’t deliver. Learn more about avoiding mortgage relief scams.

6. Don’t pay up-front for help. Federal law says that even if you hire someone to help you with your mortgage, you don't have to pay them until they deliver the results you want. It's illegal for a company to charge you a penny until you’ve accepted their written offer for a loan modification or other relief from your lender, and you’re free to reject an offer you don’t like. Even if you hire someone, you should always feel free to contact your mortgage servicer directly to see whether they can offer you additional options. Learn more about your rights when it comes to hiring a mortgage relief company.

This post was updated in March 2021 to reflect the extension of the moratorium time period. 

Search Terms

It is your choice whether to submit a comment. If you do, you must create a user name, or we will not post your comment. The Federal Trade Commission Act authorizes this information collection for purposes of managing online comments. Comments and user names are part of the Federal Trade Commission’s (FTC) public records system, and user names also are part of the FTC’s computer user records system. We may routinely use these records as described in the FTC’s Privacy Act system notices. For more information on how the FTC handles information that we collect, please read our privacy policy.

The purpose of this blog and its comments section is to inform readers about Federal Trade Commission activity, and share information to help them avoid, report, and recover from fraud, scams, and bad business practices. Your thoughts, ideas, and concerns are welcome, and we encourage comments. But keep in mind, this is a moderated blog. We review all comments before they are posted, and we won’t post comments that don’t comply with our commenting policy. We expect commenters to treat each other and the blog writers with respect.

  • We won’t post off-topic comments, repeated identical comments, or comments that include sales pitches or promotions.
  • We won’t post comments that include vulgar messages, personal attacks by name, or offensive terms that target specific people or groups.
  • We won’t post threats, defamatory statements, or suggestions or encouragement of illegal activity.
  • We won’t post comments that include personal information, like Social Security numbers, account numbers, home addresses, and email addresses. To file a detailed report about a scam, go to ReportFraud.ftc.gov.

We don't edit comments to remove objectionable content, so please ensure that your comment contains none of the above. The comments posted on this blog become part of the public domain. To protect your privacy and the privacy of other people, please do not include personal information. Opinions in comments that appear in this blog belong to the individuals who expressed them. They do not belong to or represent views of the Federal Trade Commission.