If a borrower has already been approved for a workout option and then is impacted by COVID-19, can they still be reviewed for a forbearance plan? What if the borrower is already in a mortgage loan modification Trial Period Plan or if the mortgage loan modification has already been completed?
An eligible borrower may transition directly from an active Trial Period Plan to a forbearance plan, and at the conclusion of the forbearance plan, that borrower may be evaluated for a new Trial Period Plan without the previous one being considered as “failed.” Borrowers subject to other active workout options must communicate to the servicer that they would prefer the forbearance plan, and the alternative option must be canceled by the servicer in favor of the forbearance plan. A borrower must not be subject to multiple active workout options at the same time. (Note: a previously completed mortgage loan modification is not considered an “active” workout option, as the mortgage loan terms have been permanently modified; this is not a bar to a borrower receiving a COVID-19 related forbearance plan).
See below for more information on COVID-19: