15 FAQs About Mortgage and Foreclosure Relief Under the CARES Act

The economic impact of COVID-19 has put millions of American homeowners in financial distress. To offer relief, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in 2020, which includes specific protections for homeowners with federally backed mortgages.

At Nelson, Bryan, and Cross, we’ve received an overwhelming number of questions from Alabama families about how to protect their homes during this time. Here are 15 of the most common questions—and answers—about mortgage and foreclosure relief under the CARES Act.

1. Who qualifies for mortgage relief under the CARES Act?

You must have a federally backed mortgage—this includes loans owned or guaranteed by FHA, VA, USDA, Fannie Mae, or Freddie Mac.

2. What kind of relief is available?

Eligible homeowners can request a forbearance, which temporarily suspends or reduces mortgage payments due to COVID-19-related hardship.

3. Is forbearance automatic?

No. You must request it from your mortgage servicer. No documentation beyond your attestation of financial hardship is required.

4. How long does forbearance last?

Initially, up to 180 days. You can request an extension for an additional 180 days.

5. Will I be charged late fees during forbearance?

No. Servicers are prohibited from charging fees or penalties while your loan is in CARES Act forbearance.

6. Will my credit be affected?

If you’re in an approved forbearance plan, your loan should not be reported as delinquent to credit bureaus.

7. Do I have to make a lump sum payment after forbearance ends?

Not necessarily. Options vary. You may be able to enter a repayment plan, defer payments, or modify your loan.

8. Can I be foreclosed on during forbearance?

Foreclosure and eviction proceedings on federally backed mortgages were paused under the CARES Act, initially until August 31, 2020, and later extended.

9. What if I have a private loan?

The CARES Act does not apply to privately owned mortgages. However, some lenders offer similar relief—contact yours directly.

10. How do I find out if my loan is federally backed?

Call your servicer or check directly with Fannie Mae or Freddie Mac online. Your loan documents may also provide this information.

11. Do I still need to pay property taxes and insurance?

Yes. If your servicer escrows for those items, they will continue paying them. If not, you must pay them directly.

12. What if I’m already behind on payments?

You can still request forbearance. It won’t erase missed payments but can stop the situation from worsening.

13. Can I refinance after forbearance?

Possibly. You may need to bring your loan current or complete a post-forbearance repayment plan before refinancing.

14. Should I accept forbearance if I’m still employed?

If you can afford your mortgage, continue paying it. Forbearance is a temporary solution for those experiencing financial hardship.

15. Do I need a lawyer to request mortgage relief?

No, but an attorney can help you negotiate repayment terms, clarify your rights, and defend against unlawful foreclosure.

Final Thoughts

The CARES Act provided a vital safety net for struggling homeowners, but navigating forbearance and post-relief options can be confusing. If you’re unsure how to proceed—or if your servicer isn’t treating you fairly—we’re here to help.

Contact us today to speak with an experienced foreclosure and mortgage relief attorney. We’ll help you protect your home and understand your rights during these uncertain times.