Since the passage of the CARES Act, people have been talking about forbearance. This does not eliminate payments; it only delays them and is not for everyone (especially those still able to make payments).

Forbearance is when a lender agrees to let a borrower postpone payments until a later date. The payments are not eliminated. They will need to be paid at the end of the forbearance period, spread over time, or added at the end of the loan. It’s important to know this is not for everyone but only those who have lost a job or have a financial hardship due to the coronavirus pandemic.

The recently announced mortgage payment relief through the CARES Act provides mortgage forbearance for those who have lost a job or are suffering financial hardship due to the coronavirus pandemic and whose loan is federally owned or backed by a federal agency. Let's set the record straight first—there's no such thing as "skipping" mortgage payments. 

You've worked hard over the years to build your credit, purchase a home, and secure your financial future. What can you do to minimize the impact of the coronavirus crisis?