As the City of Arlington receives and deploys CARES Act funds, the CARES Act in Action series will take a closer look into how Arlington is using its portion to serve, support and protect Arlington residents and businesses.
The CARES Act protects homeowners who have federally- or Government Sponsored Enterprise-backed mortgages through the Federal Housing Administration (FHA), Veterans Administration (VA), United States Department of Agriculture (USDA), Fannie Mae or Freddie Mac. All mortgage lenders providing these types of loans are required by the CARES Act to provide mortgage relief options to owners who are struggling to make their mortgage payments due to the impact of the coronavirus. HUD has partnered with the Consumer Financial Protection Bureau and the Federal Housing Finance Agency to provide comprehensive assistance to homeowners and renters.
Relief options include mortgage forbearance and a moratorium on foreclosure. Mortgage lenders are prohibited from foreclosing on a home before August 31, 2020. Additionally, all homeowners have the right to request and obtain a forbearance of up to six months without the risk of additional fees, penalties or additional interest added to the account. Mortgage lenders cannot require additional documentation other than your claim to have a pandemic-related financial hardship to be eligible for these relief options.