Can anyone find where the CARES Act addresses mortgage forbearance? Despite a number of news articles stating automatic 6 month + additional 6 upon borrower's request, I sifted through it briefly and could not find anything straight from the horses mouth.
Here is a link to Fannie Mae's COVID-19 updates. Likely to be updated next week. A few highlights from the single family lender letter published on 3/18, updated on 3/25:
-loan can be primary, second home or investment property
-servicer is not required to obtain documentation of borrowers hardship (only attestation)
-insight into what payment deferral or loan modification options might look like after forbearance period (looks like there will be options to spread over 60 months)
IMO, as landlords we should take both defensive and offensive measures to manage cash flow. Defensively, we should set aside ample reserves to deal with situations like this. Offensively, we should recognize that today's dollars are far more valuable than tomorrow's dollars. Potentially deferring payments up to 12 months and paying back over the following 60 months could be a pretty sweet deal. Be prepared to pay back as a lump sum if it's required.
Any negative unintended consequences of forbearance would likely be in the realm of obtaining credit down the line. I think the risk is minimal as long as you play by the lender's rules and prepare to pay the accrued balances if needed.