Mortgage – Minnesota agencies issue mortgage relief alert – Twin Cities
Minnesota homeowners who have federally backed mortgage loans and are facing financial hardships should apply now for mortgage relief to avoid foreclosures.
The state’s Commerce Department and Housing agency issued an alert on Wednesday urging homeowners hurt by the coronavirus pandemic act now. Do not wait until the last minute, they cautioned, as the deadline for mortgage relief applications for certain mortgages has been extended to Feb. 28, 2021.
Call your mortgage lender or servicer to determine if you are eligible for this assistance, the state agencies urged. Residents can find a homeownership adviser that provides free services by going online to www.hocmn.org.
About 13,000 Minnesota homeowners have Federal Housing Administration-backed mortgages that are delinquent, according to the agencies.
“Borrowers that are experiencing hardships and can’t make their mortgage loan payments should proactively reach out to their lenders to see what options they have. In many cases, the borrower’s options are better before the loan goes delinquent, or severely delinquent,” Commerce Temporary Commissioner Grace Arnold said.
The CARES Act passed by Congress earlier this year allows homeowners with federally backed loans to delay making mortgage payments, without penalty or interest for six to 12 months if the homeowners demonstrated their ability to pay had been impacted by the economic downturn caused by the pandemic.
If a homeowner is unable to make mortgage payments, but is unsure of their eligibility for CARES relief or do not have a federally-based mortgage, they should still contact their lender or mortgage servicer to discuss options.
TO KNOW MORE
If you have a question, contact the Minnesota Homeownership Center at 651-659-9336 to speak to a nonprofit homeownership advisor who can help you navigate your situation. Services are free. To find them online, go to www.hocmn.org.