The “Coronavirus Aid, Relief, and Economic Security Act” or the “CARES Act” was signed into law by President Trump on March 27, 2020. Among the various provisions that provide US individuals with financial relief, one of the most important provisions discusses mandatory forbearance options made available to borrowers of a “Federally backed mortgage loan” (which is described in\u00a0\u00a74023\u00a0of the Act<\/a>). These provisions apply specifically to a mortgage securing a property of\u00a0five\u00a0(5) units or more. A separate Section of the Act applies to mortgages securing a property of four (4) units or less and is discussed in\u00a0this blog post<\/a>.<\/p>\n\t For purposes of the Act, a “Federally backed mortgage loan” includes “any loan which is secured by a first or subordinate lien on residential real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of from 1\u00a0to 4\u00a0[units]\u00a0that is-<\/p>\n\t (A) is secured by a first or subordinate lien on residential multifamily real property designed principally for the occupancy of 5 or more [units], including any such secured loan, the proceeds of which are used to prepay or pay off an existing loan secured by the same property; and<\/p>\n\t (B) is made in whole or in part, or insured, guaranteed, supplemented, or assisted in any way, by any officer or agency of the Federal Government or under or in connection with a housing or urban development program administered by the Secretary of Housing and Urban Development or a housing or related program administered by any other such officer or agency, or is purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.<\/p>\n\t During the covered period, a borrower with a Federally backed mortgage loan experiencing\u00a0a financial hardship\u00a0<\/em>(a term which has not been defined by this Section of the Act) due, directly or indirectly, to the COVID-19 emergency may request forbearance on the Federally backed mortgage loan\u00a0by submitting an oral or written request for forbearance to the mortgage servicer. The servicer shall then:<\/p>\n\t (A)\u00a0document the financial hardship<\/u>;<\/p>\n\t (B) provide the forbearance for up to 30 days; and<\/p>\n\t (C) extend the forbearance for up to 2 additional 30 day periods upon the request of the borrower provided that, the borrower’s request for an extension is made during the covered period, and, at least 15 days prior to the end of the forbearance period described described in (B) above.<\/p>\n\t For purposes of this Section, the “covered period” means the period commencing with the enactment of the CARES Act (March 27, 2020) and the sooner of: (i) December 31, 2020 or (ii) the termination of the COVID-19 national emergency.<\/p>\n\t The information necessary to satisfy the financial hardship documentation requirement is not established under the Act and may vary from one mortgage servicer to the next. Borrowers should therefore contact their mortgage servicer in order to determine what documentation would be satisfactory for these purposes.<\/p>\n\t Borrowers of a “Federal backed mortgage loan” on a multi-family property that has five (5) or more units will be eligible to request a 30-day forbearance if they are experiencing a financial hardship as a result of COVID-19. The mortgage servicer will need to document the hardship as part of the request. Lastly, the borrower will likely be able to request up to two (2) additional 30-day forbearance periods, assuming the requests are\u00a0made during the covered period and at least fifteen (15) days prior to the end of the existing 30-day forbearance period<\/p>\n\t If your small business has been financially affected by COVID-19, contact us today to help you determine available relief options and for assistance preparing the applicable applications or filings.<\/p>\n\t Greenberg Bitton LLP can help small businesses:<\/b><\/p>\n\t If your small business has been affected by COVID-19, contact Greenberg Bitton LLP online or call\u00a0(877) 829-5294\u00a0to get help from one of our tax law attorneys today!<\/b><\/p>\n\t\t\t\t\n\t \u00a9 2021 Tous droits r\u00e9serv\u00e9s.<\/p>","protected":false},"excerpt":{"rendered":" Blog 2020 March COVID-19: Mortgage Forbearance (Residential Property) COVID-19: Mortgage Forbearance (Residential Property) By\u00a0Greenberg Bitton LLP Prev Post COVID-19: Mortgage Forbearance (Commercial Property) The “Coronavirus Aid, Relief, and Economic Security Act” or the “CARES Act” was signed into law by President Trump on March 27, 2020. Among the various provisions that provide US individuals with … Lire la suite<\/a><\/p>","protected":false},"author":1,"featured_media":0,"parent":405,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"inline_featured_image":false,"footnotes":""},"yoast_head":"\nFederally Backed Mortgage Loan<\/h3>\n\t
Qualifying for the Forbearance<\/h3>\n\t
Additional Requirements<\/h3>\n\t
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Summary<\/h3>\n\t
Greenberg Bitton LLP: Committed to those affected by COVID-19<\/h3>\n\t
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