MELS UPDATE: COVID-19 MORTGAGE RELIEF
MORATORIUM ON FORECLOSURES
There is currently a moratorium on all foreclosures through June 11, 2020. After the moratorium ends, foreclosures that are in process will resume, and new foreclosures may be initiated.
FEDERALLY GUARANTEED MORTGAGES
If you have a federally-guaranteed mortgage (FHA, Fannie Mae, Freddie Mac, VA.) and are having difficulty making payments because of a COVID-19 related hardship, you may call your mortgage servicer and request a forbearance of your payments for 180 days, and up to 12 months. During the forbearance period interest will continue to accrue, but late fees should not be charged, and there should be no negative reporting to the credit reporting agencies. At the end of the forbearance period, the entire deferred amount will become due. The missed payments will not be forgiven.
We encourage those who can continue to pay their mortgages to do so. If you had unpaid mortgage arrears before March 1, 2020, you may not be eligible for COVID-19 forbearance.
HOW DO YOU KNOW IF YOU HAVE A FEDERALLY GUARANTEED MORTGAGE?
If you have an FHA mortgage, you will find a clearly-labelled FHA number printed on the mortgage and/or the note.
WHAT IF YOU DON’T HAVE A FEDERALLY GUARANTEED MORTGAGE?
JP MORGAN/CHASE: If your mortgage is current or less than 30 days in arrears, you may request a 90-day forbearance. When the forbearance period is over, you may resume regular monthly payments or apply for a loan modification.
OTHER LENDERS: Currently it is not publicly known what the other mortgage companies will be offering. Call your mortgage company/servicer and ask them what your options are. We recommend that you speak with a MELS attorney before you agree to anything. To arrange a screening, please call 212-815-1111 or email KGomez@dc37.net for assistance.
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