You are here: Benchmark Home » Your Loan » Home Loan Assistance Information

CARES Act Information

  Download as printable PDF

A new federal law, the Coronavirus Aid, Relief, and Economic Security (CARES) Act offers mortgage assistance options for borrowers who have federally-backed mortgages and who are experiencing financial hardship as a result of the virus.

But before you make any decisions about pursuing these options, carefully assess your situation. If you are still able to pay your mortgage, even in part, please try to do so. Mortgage assistance does not relieve you from your obligation to make your payments. Carefully read the information below:


What You Need To Know

The CARES Act offers certain protections for any homeowner whose mortgage is backed by the federal government. These protections include:

1. A right to forbearance due to financial hardship – The CARES Act allows you as the borrower to request a forbearance on your mortgage.* A forbearance is a temporary suspension of your monthly mortgage payment with the understanding that all suspended payments along with the current month’s payment are due in full at the end of the forbearance term. There may be other options available to you at the end of the forbearance period based upon investor and insurer guidelines.

*Residential loans may be federally-backed or not federally-backed. The CARES Act only applies to federally backed mortgages. The vast majority of borrowers in owner-occupied homes have federally-backed loans.

A Note about Deferment – Deferment suspends the principal and interest portion of your mortgage payments for a specific period of time and defers them to the end of your loan. If your loan is federally-backed, you are not eligible for deferment under the CARES Act.

2. A foreclosure moratorium – For federally-backed mortgage loans, your lender or loan servicer may not foreclose or take eviction action on you for 60 days after March 18, 2020. Specifically, the CARES Act prohibits lenders and servicers from beginning a judicial or non-judicial foreclosure against you, or from finalizing a foreclosure judgment or sale, during this period of time.

3. While your credit will not be negatively impacted during the forbearance period, certain options available after the forbearance could negatively impact your credit. The reality is that if you fail to make your scheduled payments, you have not fulfilled the obligations of the loan and this must be reported. Forbearance is simply a tool to grant short-term relief while you recover from a hardship.

As with all major financial decisions -and especially with those affecting your home -you should carefully consider all the implications, weigh your options and run the numbers.

Take a look at the sample illustration of what a homeowner’s financial obligation may look like with a 90-day forbearance to see what’s right for you. You can see the amount owed for a one-, two-or three-month suspension of mortgage payments in this example is $6,000 at the end of the forbearance period.

NUMBER OF MONTHS REGULAR MONTHLY PAYMENT FORBEARANCE AMOUNT* AMOUND DUE AT END OF FORBEARANCE**
1 $1,500 $1,500 $3,000
2 $1,500 $3,000 $4,500
3 $1,500 $4,500 $6,000
*Monthly payment times the number of months **Forbearance Amount + Next Payment Due

This sample illustration shows a homeowner’s financial obligation if they chose a longer forbearance period -four, five or six months.

NUMBER OF MONTHS REGULAR MONTHLY PAYMENT FORBEARANCE AMOUNT* AMOUND DUE AT END OF FORBEARANCE**
4 $1,500 $6,000 $7,500
5 $1,500 $7,500 $9,000
6 $1,500 $9,000 $10,500
*Monthly payment times the number of months **Forbearance Amount + Next Payment Due

Does a 3-month forbearance at this time still work for you? Under the CARES Act, you do have the option for a longer term, up to 12 months. Please remember that all suspended payments are due at the end of the forbearance period, although if you are still experiencing a financial hardship at the end of the forbearance, we may be able to offer additional options. These options will require documented proof of a financial hardship caused by the COVID-19 pandemic.

If you would like to pursue a forbearance of your payments, please contact the number on your mortgage servicing statement to speak with a representative. Stay safe and be well!

Home Loan Assistance Information

This is important information regarding options that may be available to you in regards to your loan. You may qualify for one of the options listed below.


If you are having difficulty making your payments and would like to remain in your home, the following options may be able to assist you in doing so while avoiding foreclosure.

  1. Modification: A permanent change to your existing mortgage note. This may include the capitalization of the delinquent balance of the loan if applicable, a reduction of your current interest rate or an extension of the term of your present note.
  2. Forbearance: A temporary reduction or suspension of your monthly mortgage obligation. This is designed to help borrowers whose hardship is temporary, such as short term disability or unemployment.
  3. Repayment Plan: A scheduled payment arrangement that results in bringing your loan current at its conclusion.

To expedite your review please begin to gather the following documents we will need to decision your loan for any of the options listed above.

  • Most recent year’s Tax Returns
  • Paystubs for last 60 days
  • Other pertinent income documents if applicable (Social Security awards letter, pension, current P&L statement)
  • Last 3 months bank statements (All pages)
  • Other documentation showing hardship

If you can no longer afford to stay in your home or have vacated your property, these options may help you avoid foreclosure

  1. Short Sale: The sale of your current property for an amount less than what is currently owed on the property.
  2. Deed in Lieu: An agreement to deed the property back to the bank in an effort to avoid foreclosure in exchange for the discharge of the debt.

To expedite your review please begin to gather the following documents we will need to decision your loan for any of the options listed above.

  • Most recent 2 Years tax returns
  • Paystubs for last 60 days
  • Other pertinent income documents if applicable (Social Security awards letter, pension, current P&L statement)
  • Last 3 months bank statements (All pages)
  • Other documentation showing hardship
  • If your property is currently listed with a real estate agent, we require a third party authorization form containing the agents name and contact information.

In order to complete a Short Sale please be aware of the following requirements:

  • You must cooperate and allow us access to the interior of your property to enable us to determine an appraised value.
  • The sale must be an “Arm’s Length Transaction” which means that all parties involved must be unrelated or unaffiliated.
  • If there is a deficiency, or shortage between how much you still owe and the final proceeds received from the sale of your property, you may be required to make a contribution toward any such deficiency. The contribution could be in cash or a promissory note.
  • If the property is sold as a Short Sale you will not be permitted to receive any proceeds from the sale of the property, or to receive funds that may be paid in relation to a hazard/flood insurance claim.

To discuss any of the above options that may be available to you, or to request a Borrower Response Package which must be completed and returned to us along with the aforementioned documents please contact us at (877) 909-9416. In addition you may call the Housing and Urban Development office at (800) 569-4287 or you may use the following link to find a HUD certified counseling agency: http://www.hud.gov/offices/hsg/sfh/hcc/fc