LINCOLN – In the wake of the COVID-19 pandemic, Attorney General Doug Peterson and a bipartisan coalition of 34 attorneys general recommended actions to help homeowners in letters sent today to the Federal Housing Finance Administration (FHFA) and the Department of Housing and Urban Development (HUD).
“Nebraska homeowners are facing unprecedented challenges as a result of COVID-19, often through no fault of their own,” Attorney General Peterson said. “I encourage financial institutions and mortgage servicers to help homeowners who cannot meet their obligations because of this pandemic and to provide these homeowners with the relief they need.”
The letters recommend FHFA and HUD:
The protection of the CARES Act applies only to federally backed mortgages, which make up approximately 62 percent of the mortgage market. Borrowers who are not covered should contact their mortgage servicer (the company to which they send their monthly payment) to determine whether it is offering any relief during the pandemic.
Are you eligible for relief?
If you have a federally backed mortgage, you have the right to request a forbearance for up to 180 days if you have a financial hardship due to the coronavirus pandemic. You also have the right to request one extension for up to another 180 days.
To determine whether you are eligible for a forbearance plan or other assistance:
Keep in mind that forbearance doesn’t erase what you owe. You still must repay any missed or reduced payments in the future.
Trouble getting relief?
Attorney General Peterson reminds Nebraskans that he and his staff are diligently monitoring and investigating consumer complaints related to COVID-19. Consumers are encouraged to visit www.protectthegoodlife.nebraska.gov for additional tips for protecting themselves during the COVID-19 crisis.