Get help understanding what happens after mortgage payment suspension

Updated April 2, 2021

We understand that COVID-19 continues to cause unpredictable hardships. And while we know you want to get back on your feet as quickly as possible, we realize you may not yet be able to repay your suspended mortgage payments in a lump sum or as part of a repayment plan that increases your monthly payments for a period of time.

Deciding to resume making payments, if you can, is a good choice because it:

  • Provides you with the opportunity to apply for new credit or to refinance.
  • Reduces the chance that your escrow account, if you have one, will have a shortage. If you miss payments, your escrow account may not have enough to cover your tax and insurance bills. We’ll continue to pay them, but this could increase your future monthly payments.
  • Reduces the number of suspended payments that you’ll need to repay.

We can help discuss programs that consider your financial situation, including your loan status, type of loan, and whether your payments were current when the COVID-19 emergency was declared in March.

When you are ready to resume making payments or need to extend relief, you need to request this assistance for each account separately.  For home equity accounts, you will need to call us to resume making payments or to request additional assistance.

Described below are the basic programs for federally backed loans. The agencies investing in these loans are the Federal Housing Administration (FHA), Veterans Affairs (VA), Fannie Mae (FNMA), Freddie Mac (FHLMC), and U.S. Department of Agriculture (USDA).

Additionally, programs are available for customers with Wells Fargo or other investors not noted above.

How to determine who the investor is for your loan

For new payment suspensions, a communication will be sent to you 7-10 days from your request for suspension.  If you are already on payment suspension, a letter and email will be sent toward the end of every 3-month payment suspension period. It will provide your loan details including who the investor is on your loan and the available repayment programs. If you do not have an email address on file or have not yet requested payment suspension, you can call us at 1-877-937-9357 to find out.

You can find out if your loan investor is Fannie Mae or Freddie Mac by visiting these sites or calling us at 1-877-937-9357.

For additional information on the CARES Act protections, visit the Consumer Financial Protection Bureau’s site.

Return to Answers to frequently asked Mortgage and Home Equity Questions.

Programs to help you make up missed payments

 

Customers who are active on payment suspension as of 2/28/2021 and are still experiencing a COVID-19 hardship may be eligible to receive up to 18 months of payment suspension and may be eligible to defer up to 18 months of missed payments, providing that they don’t exceed 18 total months of delinquency.

Customers who enter payment suspension after 2/28/2021, may be eligible to receive up to 12 months of payment suspension and may be able to defer up to 12 months of missed payments.

Additional programs exist for customers who cannot qualify to defer their payments, including:

  • A repayment plan where the amount due from the missed payments is divided into manageable amounts and spread out over time. This would increase your regular mortgage payments for a while, but would bring the mortgage up to date.
  • A loan modification where certain terms of your loan are changed — such as the interest rate or the time allowed for repayment — to make payments more manageable. This program is intended for people experiencing long-term financial hardships.

Customers who requested payment suspension prior to 6/30/2020 and are still experiencing a hardship due to COVID-19 may be eligible to receive up to 18 months of payment suspension.

Customers who requested payment suspension on or after 7/1/20 due to a financial hardship related to COVID-19 may be eligible to receive up to 12 months of payment suspension. Customers will not be able to extend their payment suspension beyond 12 months after 12/31/2021.

When customers are ready to resume their payments, the following programs may be available to repay any missed payments:

  • FHA COVID-19 Standalone Partial Claim where you resume making your regular mortgage payment and the amount of missed payments is moved to a second, interest-free loan that is repaid when your home is sold or refinanced, or the mortgage is paid off.
    • This program would:
      • Bring your mortgage current.
      • Keep the terms of your mortgage unchanged.
      • Maintain your current interest rate and the due date of your final loan payment.
      • Create a separate, interest-free loan, secured by your property. It won’t be due until you pay off your mortgage, refinance, or no longer own the home.
      • Require you to sign final loan documents, but you won’t need to submit any new application documents to qualify.
    • Please note:
      • Your home must be your primary residence.
      • If you’ve had this type of FHA assistance before, you may not qualify for this solution. If you need help with missed payments in the future, we may have other solutions for you.
  • A repayment plan where the amount due from the missed payments is divided into manageable amounts and spread out over time. This would increase your regular mortgage payments for a while, but would bring the mortgage up to date.
  • A loan modification where certain terms of the loan are changed – such as the interest rate or time allowed for repayment – to make payments more manageable. This program is intended for people experiencing long-term financial hardships.

Customers who requested payment suspension prior to 6/30/2020 may be eligible to receive up to 18 months of payment suspension if they are still experiencing a financial hardship related to COVID-19.

Customers who request COVID payment suspension on or after 7/1/2020 due to a financial hardship related to COVID-19 may be eligible to receive up to 12 months of payment suspension. Customers will not be able to extend their payment suspension beyond 12 months after 12/31/2021.

When customers are ready to resume their payments, the following programs may be available to repay missed payments:

  • A repayment plan where the amount due from the missed payments is divided into manageable amounts and spread out over time. This would increase your regular mortgage payments for a while, but would bring the mortgage up to date.
  • Payment deferral where the amount of the missed payments is added to the end of your loan term. This would extend the loan term by the number of missed payments.
    Please note: You can defer payments missed because of COVID-19 related hardship only once. If you need help with payments in the future, we will need to find another program for you.
  • A loan modification where certain terms of your loan are changed — such as the interest rate or the time allowed for repayment — to make payments more manageable. This program is intended for those experiencing long-term financial hardships.

Customers who are active on payment suspension as of 2/28/2021 and are still experiencing a COVID-19 related hardship may be eligible to receive up to 18 months of payment suspension and may be eligible to defer up to 18 months of missed payments, provided they don’t exceed 18 months of delinquency.

Customers who enter payment suspension after 2/28/2021, may be eligible to receive up to 12 months of payment suspension and may be eligible to defer up to 12 months of missed payments.

If your account is not eligible to have the missed payments moved to the end of the account term, we will work with you to discuss other programs to make up the missed payments.  We may need to gather your financial information to review and qualify you.

When customers are ready to resume their payments, the following program may be available to repay missed payments:

  • A loan modification where certain terms of your loan are changed — such as the interest rate or the time allowed for repayment — to make payments more manageable. This program is intended for those experiencing long-term financial hardships.

Customers who can afford to do so can repay the payments missed during the suspension period all at once to bring the account current then continue with normal payments. We understand that some people may not be able to do this and we have other programs available if needed. We can consider the customer’s financial situation and loan status to help us determine eligibility for one of these programs. Additional financial information may be required to review and qualify the customer for the solution. Programs may include:

  • Payment deferral where the amount of payments missed during the payment suspension period is added to the end of your loan term. These missed payments would be due all at once when you pay off your mortgage, refinance, or no longer own the home. For payments missed prior to the payment suspension period, we will not be able to add these to the end of the loan term.  In this case, we will discuss programs with you to help you catch up.
  • A repayment plan where the amount due from the missed payments is divided into manageable amounts and spread out over time. This would increase your regular mortgage payments for a while, but would bring the mortgage up to date.
  • A loan modification where certain terms of your loan are changed — such as the interest rate or the time allowed for repayment — to make payments more manageable. This program is intended for people experiencing long-term financial hardships.

If you don’t think that you will be able to resume your mortgage payments at the end of the payment suspension period, contact Wells Fargo right away, before the end of your payment suspension period. We may be able to discuss longer-term help.

Here is what we report to consumer reporting agencies:

  • If you elect to resume payments, we will usually report your loan’s current or delinquent status, along with other loan details, each month.
  • Depending upon how your suspended payments are resolved, we may report a special comment code that indicates you were previously affected by the COVID emergency or received a hardship modification.
  • If a trial payment plan is used to resolve your suspended payments and you pay in accordance to its terms, we will not report the delinquency status of your loan during the trial period.
  • If you make larger payments for multiple months to resolve the suspended payments through a repayment plan, we will not report to consumer reporting agencies during the repayment plan period.

The Consumer Financial Protection Bureau (CFPB) offers the Homeowner’s Guide to Success which explains what to do if you can’t pay your mortgage. It also explains other consumer protections and what your next steps are.