Author: Mr. Cooper Published: March 20, 2020 Mr. Cooper Blog
Whenever You Need It, Help Is Here
If your ability to pay your mortgage has been impacted by the pandemic, Mr. Cooper can help. Here’s a quick introduction:
- Review the information here to understand your options, including our Pandemic Forbearance Plan, and find answers to questions that many homeowners are asking.
- You can check our FAQs if you have a specific question, or continue reading for quick information and access to help.
- And we encourage you to check back often, as we will regularly update the available information and resources.
Payment Due? Here’s What You Need to Know.
If your mortgage payment was due on the first of the month, remember that you have a grace period until the 15th to make your payment without any penalties, late fees, or harm to your credit. You can always use our website, our mobile app or our automated phone system to make a payment from anywhere.
Our phone lines are extremely busy right now, but we are increasing our call center capacity. Expect hold times to speak with an agent to improve very soon.
If you are unable to make your payment by the 15th due to the pandemic, we’re here to help. See below for more information on what to do next.
Stay Prepared for What’s Next
We may need to get in touch with you over the next few months. Update your contact information, especially your cell phone number and email address on mrcooper.com. Create an online account if you don’t have one.
If you can continue making your mortgage payments, you should do so. This provides us the ability to help as many customers as possible who are most impacted by this pandemic.
And remember, your health and the health of the people you love is the most important thing right now. Be sure to check in with the Centers for Disease Control for the latest news and advice. They’re updating their pages often, so check back regularly to make sure you’re up to date.
What to Do If You Can’t Make a Mortgage Payment
If you’re a Mr. Cooper customer and the pandemic has caused a financial hardship that will prevent you from paying your mortgage, we’re here to help. We’ve led the charge with federal agencies and housing authorities to make new assistance programs available for homeowners in need. While some details are still being ironed out, here’s what we can tell you:
Short-term relief is available. If you are experiencing a financial hardship due to the pandemic, you have the option to temporarily pause your mortgage payments. This is called a forbearance.
While forbearance may be a great option to help you through this crisis, remember, once your forbearance is over, any paused payments will need to be repaid. We’ll work with you to find a payment solution that works for you, but it’s best to save this option until you need it most.
Remember, if your payment is due at the beginning of the month, you have time. You can begin the process online by filling out a Pandemic Forbearance Plan Request here. If possible, it’s best to continue making your mortgage payment and apply for forbearance when you need it.
Is forbearance the right option for you? Forbearance due to the COVID-19 pandemic is available to you if you are experiencing a financial hardship due to the pandemic. Some examples are:
- You have lost work due to the pandemic.
- You are sick and can’t work.
- You are caring for a sick family member and therefore can’t work.
- You have experienced a significant decline in income due to the pandemic.
With a forbearance, you’ll be able to pause your mortgage payments for an initial period of three to six months. If you get to the end of your forbearance period and can’t bring your balance current, you can extend the forbearance period up to 12 months total. Before your forbearance plan ends, we’ll work with you to reevaluate your situation and figure out what’s next.
What happens after a forbearance? At the end of your forbearance period, all payments not made during the forbearance period will have to be paid back. We realize this will probably be a big financial burden, which is why you’ll have a few options for how to handle it:
- Start a repayment plan — Over a set number of months, an extra amount will be added to your regular mortgage payment to cover the amount you owe from the forbearance.
- Pay it as a lump sum — If possible, the simplest option is to pay back the full amount owed at one time.
- Loan modification — If you are unable to pay a lump sum or enter into a repayment plan, we will work with you on a loan modification. This may include an extension at the end of your loan giving you additional months to pay the forbearance amount.
Note: Please don’t stop making your mortgage payments until you’ve been approved for a forbearance plan. These programs are not payment forgiveness programs. They’ll require any paused payments to be repaid, so save these options for when you need them most.
Why Forbearance and Not Payment Forgiveness
We know that some announcements in the news may have led you to believe that your mortgage company can waive your upcoming payments or offer payment forgiveness. If your loan is owned by Fannie Mae or Freddie Mac, or if you have an FHA, VA, or USDA loan, waivers or payment forgiveness is not available, regardless of who your mortgage company is. The CARES Act (recently enacted federal legislation) mandates forbearance for these types of loans as an immediate relief option for homeowners who need assistance.
Right now, we are working closely with these agencies, as well as Congress and other federal authorities, to urge them to make the best programs available for homeowners like you. We’ll keep you updated with any new information we have.
What to Do If You’re Experiencing Extra Long Hold Times
To make sure we’re here to help you, we’ve enabled nearly 100% of our employees to work from home. We are also adding a significant number of team members to our customer service team at this very moment. Even still, we are getting a lot more calls than normal. We’re committed to speaking to everyone who needs us, but we know that waiting on hold can be frustrating. To avoid long wait times, these tools might help:
- Visit our online help center to find quick answers on tons of topics, including mortgage assistance.
- Create an online account or Sign In to make payments, check payment activity, and access your documents. Everything you need to manage your mortgage is there.
- Get the Mr. Cooper App to manage your mortgage from anywhere. It’s free, and available for iOS and Android.
Look Out for Scams
Criminals often take advantage of situations like these to impersonate companies, charities or government agencies. Keep an eye out for suspicious looking or sounding emails, text messages, or phone calls. Remember, a Mr. Cooper team member will never ask you for your account username or password.
Last updated: APRIL 10, 2020