Richard Anderson, an independent entertainment agent in Rockford, saw his contracts disappear and his income evaporate when the state’s home support order was implemented in late March.

So he was grateful when his mortgage company offered to skip three payments. The stress returned when a letter arrived saying that all skipped payments must be repaid “at the end of the relief period.”

“I called and said, ‘How can this help if we don’t know if it’s going to be over by then? ” ” he said.

This week, Anderson is much less stressed by his prospects of a break on those mortgage payments. On Monday, Freddie Mac, Fannie Mae and the agency overseeing them all issued statements that borrowers would not be required to make lump sum payments after their forbearance period ends.

These announcements were intended to dispel the confusion, and some say the misinformation, about the obligations of homeowners who enroll in the Federal Assistance Program. Freddie Mac CEO David Brickman said in a statement that mortgage agents are forced to work with borrowers to find the best option.

“Simply put, if you are a homeowner looking for a forbearance and Freddie Mac owns your loan, you are never required to make up missed payments in a lump sum. Our policies offer a number of options for updating borrowers.

These options include a repayment plan that allows borrowers to repay missed payments month after month; a deferral that allows them to transfer payments until the end of their loan term or a loan modification that will change the terms of their mortgage. Freddie Mac said that 30 days before the end of the forbearance period, agents will be in contact with borrowers to establish a repayment plan.

For Anderson and others, the announcements help clarify their obligations at a time of heightened uncertainty and skepticism about the program. Since mid-March, millions of Americans have applied for the mortgage forbearance program. Those financially affected by COVID-19 would be eligible for a six or 12-month break from their mortgage payments if they have a government-sponsored mortgage. (FHFA.gov has a search tool for those who want to verify they have a Fannie or Freddie mortgage).

Last week, the Mortgage Bankers Association said nearly 7% of mortgage holders – or 3.5 million loans – had requested forbearance as of April 19, and the figure is steadily rising.

Julie Gugin, executive director of the MN Home Ownership Center, said COVID-related calls rose 30 to 50 percent in April. A growing number of those calls, she said, come from borrowers concerned and confused by federal forbearance programs designed to help them. The center works with agencies across the state to provide resources and information on homeownership, but also helps those who are struggling to afford their homes.

“Interest in what the future will bring has grown,” she said. “We are encouraged that it appears mortgage companies are better prepared to work with homeowners up front than during the foreclosure crisis.”

Anecdotally, she said, many private mortgage companies also offer loan modifications to people who ask for forbearance, allowing them to add payments at the end of the mortgage.

Gugin, who has headed the organization since 2007, said that while the current situation looks a bit like the 2008 recession, she hopes it won’t be a repeat of the Great Recession. Consumers now have access to more financial resources through improved and expanded unemployment benefits aimed at replacing lost earnings. In addition, government agencies and lenders are more proactive. Yet she predicts a dramatic increase in the number of people who will fall behind on their mortgages while waiting for these benefits.

“More than half a million people have applied for unemployment benefits,” she said. “So there will be flaws, but the extent depends on how long and how long people are unemployed and what happens with unemployment benefits.”

She advised people who are worried about making their mortgage payment or that the repayment terms might not be right to immediately call their mortgage company or the company that manages that mortgage. And she said homeowners who are able should keep making their payments.

“Tolerance is not forgiveness and people must take action,” she said. “Acting early is always important before you even think about missing a payment.”

Managers of federally guaranteed mortgages have had to adapt quickly to the new federal CARES law, which aims to help those affected by COVID-19, and have included information on their websites and notified borrowers or their options.

Keosha Burns, vice president of public relations at Chase Home Lending, which manages Anderson’s mortgage, said the lender recently received additional repayment advice from Fannie and Freddie.

“Chase will stay in touch with our customers throughout this time and make sure they get the help they need. For loans held by Fannie, Freddie or Chase, homeowners can defer missed payments at the end of the mortgage term, ”she said. “We are encouraged that for most of the loans we manage, clients will have the ability to easily move missed payments until the end of the mortgage term, taking away a lot of the worries people have. had. “

For Anderson, the new directive helps give confidence that a break in his mortgage payments won’t lead to even greater difficulties in a few months. He said that with large gatherings likely to be banned for months, it could be several months before he and others in the music industry organize events again.

Like other self-employed workers, he is eligible for expanded unemployment and assistance programs, which he applied for immediately after his reservations ceased. Although his online application indicated he was not eligible, he called the Minnesota Unemployment Benefit Office and was assured he had been approved. More than six weeks after his request, he has yet to receive any payment, even his $ 1,200 stimulus check.

If he has enough savings to pay the bills for a few months, he’s already thinking about the long-term situation and how he’ll prioritize his payments. Although he has been assured that his unemployment benefits will eventually be paid retroactively, he is still worried about his long-term financial prospects. After withdrawing from his original plan to proceed with a three-month forbearance, recent directives give him the confidence to do another investigation.

“I just live off everything I had hidden and have had no income since March 15,” he said. “Who knows what’s going to happen? “