The Coronavirus Aid, Relief, and Economic Security (CARES) Act was just signed last month.
It gives borrowers of federally backed mortgage loans only, the right to contact their loan servicer and request a forbearance.
70%+ of loans are federally backed but the borrower has to ask.
No documentation is required just attesting that Coronavirus has caused a financial hardship The mortgage servicer is allowed to approve the forbearance for 90 days at a time. Before the 90 days are up the borrower can ask again for another 90 days. The borrower can do this for up to a year.
At the end of the period (90 days - 1 year) the Loan Servicer must give the borrower options to pay it back. (Lump sum, larger payments to get caught up, add payments on end of loan, etc.) There are no penalties, fees, or additional interest.
The government has forbidden any foreclosure actions against borrowers for 60 days beginning March 18. Borrowers must contact their lender to receive this forbearance it is not automatic.
Many of the 30% of institutions that are NOT required by this law to offer forbearance are still offering their mortgage holders some type of relief but the customer has to call to request it.