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Factbox-What U.S. homeowners can do as mortgage forbearance ends By Reuters

by Mike Robinson

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© Reuters. FILEPHOTO: Manhattan’s Empire State Building rises in front the Brooklyn Bridge and Manhattan Bridges, as seen from an apartment within the Central Park Tower Building. The building is celebrating its top in New York City on September 17th 2019. REUTER

By Jonnelle Marte

(Reuters) – As those who signed up in time for the pandemic hit the 18 month limit, the number of homeowners leaving mortgage forbearance programs that allow them to halt their payments is likely to increase.

These are steps homeowners should take to get out of forbearance.

CONTACT YOUR MORTGAGE OFFICER

Many people will start by contacting their mortgage servicer. They process their payments and then distribute the money to tax authorities, investors and insurance companies.

The Mortgage Bankers Association reports that servicers have simplified and increased the staffing to handle the flood of inquires from borrowers nearing the end-of-forbearance.

Find out WHO GUARANTES YOUR MORTGAGE

Fannie Mae loans are guaranteed with different payment terms than loans that are backed by. Freddie Mac Private investors may also hold them (OTC:).

Borrowers may find out the owner of their mortgage by contacting the servicer, or searching online using tools such as Fannie Mae and Freddie Mac.

Choose a Payment Plan

Although there are many options, borrowers who have been granted forbearance can choose to continue their payments, receive a loan modification to reduce their monthly payments, or pay what they owe through the sale or refinance of their house. These options are now easier because of strong housing markets.

These changes will not require homeowners to provide documentation. Many borrowers may request deferred mortgage payments to be paid at the end of their loan, according to housing counselors.

Find a HOUSING CONSULTANT

A housing counselor can assist homeowners who are having difficulty finding a payment plan that is affordable or feel confused about their mortgage situation.

Housing counseling agencies that help homeowners avoid homelessness or foreclosure are supported by the U.S. Department of Housing and Urban Development. If the borrower is having trouble switching to another plan, counsellors are available to help.

For more information on assistance, homeowners can contact Fannie Mae and Freddie Mac.

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