They won’t foreclose on you, but your credit score will be affected. From the AP:
Certain borrowers nervous about missed house payments got some relief as two major government backers of mortgages have said they’re stopping foreclosure work for the next 60 days.
The Federal Housing Administration and Fannie Mae announced moves to help out borrowers behind on house payments as part of effort to mitigate the financial impact of the coronavirus outbreak.
Loan servers of FHA and Fannie Mae loans have been directed to stop starting new foreclosure actions; suspend foreclosures in progress; and not evicting residents of foreclosed properties with loans backed by these agencies. Borrowers in financial trouble are encouraged to contact their loan servicer to inquire about various relief programs.
“Today’s actions will allow households who have an FHA-insured mortgage to meet the challenges of COVID-19 without fear of losing their homes, and help steady market concerns,” said U.S. Department of Housing and Urban Development Secretary Ben Carson. “The health and safety of the American people is of the utmost importance and the halting of all foreclosure actions and evictions for the next 60 days will provide homeowners with some peace of mind during these trying times.”
“Fannie Mae, along with our lending and servicing partners, is committed to ensuring assistance is available to homeowners in need. We encourage residents whose employment or income are impacted by COVID-19 to seek available assistance as soon as possible,” said Malloy Evans, Fannie Mae’s senior vice president.
President Donald Trump announced Wednesday that he will invoke a federal provision that allows the government to marshal the private sector in response to the coronavirus pandemic.
Trump, now describing himself as a “wartime president,” said he would sign the Defense Production Act “in case we need it” as the government bolsters resources for an expected surge in cases of the virus.
The announcements came on a fast-moving day of financial developments. The Senate was taking up a financial aid package while the administration pushed forward its economic relief plan, which proposes $500 billion in checks to millions of Americans, with the first checks to come April 6 if Congress approves the plan.
Trump dismissed talk from his own treasury secretary, Steven Mnuchin, who suggested that the nation could face 20% unemployment at least in the short term. That’s an “absolute total worst case scenario,” Trump said. “We’re no way near it.”
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