Some homeowners who took pandemic loan forbearance could owe huge sums

Some homeowners struggle to make pandemic loan forbearance payments. Since March 2020, millions of homeowners have received financial sup...

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  • Some homeowners struggle to make pandemic loan forbearance payments.
  • Since March 2020, millions of homeowners have received financial support thanks to the CARES Act.
  • Now those owners owe back payments.

Bad news for many in the United States. Many homeowners who took advantage of loan forbearance during the Covid pandemic are now having to make back payments — in one case, as much as $26,000 — according to The Sun.

Since March 2020, millions of homeowners have received financial support, thanks to the CARES Act, that allowed them to temporarily pause or reduce their mortgage payments. Now some of those past payments are coming due.

Homeowners struggle with past mortgage payments

MORTGAGE REFUND

Photo: AP

To be eligible for mortgage relief, homeowners had to have experienced financial hardship associated directly or indirectly with the Covid pandemic and have a federally backed mortgage, including loans from HUD/FHA, VA, USDA, Fannie Mae and FreddieMac.

The moratorium on those payments was extended for more than a year. However, last July it ended with an extension granted until September 2021 for those with mortgages protected by the federal government.

Who will have to pay large sums?

mortgage
Photo: Twitter

Now that the loan forbearance period has ended, homeowners are grappling with accumulated past payments while trying to cover current payments on their home. This happened to an Alabama man who now owes $26,000, according to The Sun.

Jimmy Stokes indicated that his mortgage company offered him a loan forbearance to temporarily stop the payments and he was told they would be added to the end of his loan. However, in January the bank sent him a letter charging him the full amount of the late payments, equivalent to $26,000, according to WPMI. “If I had known, I never would have done it,” Jimmy said.

The post Some homeowners who received help will now have to pay up to $26,000 appeared first on Mundo Hispánico.