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COVID-19 Foreclosure protections update

Loan Modification Approved
make an informed decision

There are a lot of misinformation floating around on the internet regarding COVID-19 Forbearance and Foreclosure Protections.

Several forbearance and other foreclosure related protections have been extended for homeowners.

Millions of federally guaranteed mortgages have been granted option to extend their forbearance for an additional six months and the federal foreclosure moratorium deadline has been extended to June 30, 2021.

The COVID-19 protections apply to seventy percent (70%) of existing single-family mortgages, including the 2.7 million homeowners who are currently in forbearance, according to a statement released by the White House.

Forbearance is allowing homeowners who are struggling financially with the option to pause their monthly mortgage payments without hurting their credit score or paying additional penalties.

Pro Tip

 Your lender or servicer will not automatically place your loan on forbearance or extend it automatically. It is important to reach out to or the Home Assistance Center (HAC) or your servicer right off the bat to understand all options available to you.


The new forbearance and foreclosure deadline apply only to loans backed by the federal agency, Fannie Mae or Freddie Mac. If you have a private mortgage, then the moratoriums do not apply to you.

Many private lenders are offering forbearance; therefore, be proactive not reactive.

Loan Type Deadline to Request Covid Forbearance Maximum Length of Covid Forbearance Foreclosure Moratorium
FHA Loan June 30, 2021 Up to 18 months Through June 30, 2021
VA Loan June 30, 2021 Up to 18 months Through June 30, 2021
USDA Loan June 30, 2021 Up to 18 months Through June 30, 2021
Freddie Mac Feb. 28, 2021 Up to 18 months Through June 30, 2021
Fannie Mae Feb. 28, 2021 Up to 18 months Through June 30, 2021
Other Loans Varies Varies None


When you’re ready to exit forbearance and to being making payment, there are multiple options open to you. Some lenders are requiring the borrowers to make lump-sum payment, reaching out to one of our advisors will help defend your case with your lender providing options such as loan modification, deferred payment and repayment plan.

For those who are still expecting financial hardship after the expiration of the COVID-19 forbearance, should look towards a more long-term option such as loan modification. An advisor at HAC is able to negotiate with your lender in regards to a combination of reduction of interest rate, increase repayment terms and deferment of debt to provide a smoother path to reinstatement of your mortgage.