Homeowners with federally guaranteed mortgages can skip monthly payments for up to a year without penalty and make them up later. PHOTO: BING GUAN/BLOOMBERG NEWS
By Andrew Ackerman | The Wall Street Journal
WASHINGTON—About one million homeowners have fallen through the safety net Congress set up early in the coronavirus pandemic to protect borrowers from losing their homes, according to industry data, potentially leaving them vulnerable to foreclosure and eviction.
Homeowners with federally guaranteed mortgages can skip monthly payments for as long as a year without penalty and make them up later. They must call their mortgage company to ask for the relief, known as forbearance, though they aren’t required to prove hardship.
Many people have instead fallen behind on their payments, digging themselves into a deepening financial hole through accumulated missed payments and late fees. They could be at risk of losing their homes once national and local restrictions on evictions and foreclosures expire as early as January.
