COVID-19 Mortgage Relief Policies: Foreclosure and Forbearance

By -

It has been a financial challenging year for many Americans, and with that a lot of effort has been expended trying to keep people in their homes by halting foreclosures and evictions. This is the latest update regarding COVID-19 mortgage relief:

·        If your home was in foreclosure prior to the onset of the COVID-19 pandemic, there has been a moratorium that keeps the foreclosure process from continuing. Currently there is a foreclosure moratorium on federally guaranteed mortgages through June 30, 2021 meaning homeowners are protected from the initiation or continuation of foreclosure proceedings. These mortgages make up about two-thirds of resident mortgage loans across the nation.

·        If the house you are living in foreclosed before the Pandemic and became a Bank owned property (REO), you cannot be evicted until after June 30, 2021.

·        The mortgage payment forbearance enrollment window was also extended through June 30, 2021. Payment forbearance allows homeowners to pause or reduce their mortgage payments for a certain period of time. Borrowers who enter into forbearance on or before June 30, 2021 will receive up to six months of mortgage payment forbearance.

·        For mortgages backed by Fannie Mae and Freddie Mac; you may be eligible for an additional three months of forbearance. This could allow up to 18 months of forbearance time in total. To qualify for the extension, you must have been in a forbearance as of February 28, 2021. Other limits may apply. The COVID-19 Payment Deferral allows borrowers to repay the missed payments at the time the house is sold, refinanced, or the when the loan matures.

 What to do if you are having difficulty managing your mortgage?  

Continue to communicate with your lender and check your Lender/Servicer’s website for updates and information. Most sites contain content explaining options if you are struggling with mortgage payments at this time. If you still have questions or concerns, Schedule a counseling session with CCCS of Buffalo or your local HUD-Certified Housing Counselor to help you navigate during this difficult time. 

For up-to-date information visit: https://www.consumerfinance.gov/coronavirus/mortgage-and-housing-assistance/

Comments

Post a Comment

Popular posts from this blog

Details of President Biden’s New Student Loan Forgiveness Program; Announces Final Extension to Student Loan Repayment Program

By -
  Millions of Americans have waited eagerly over these past two and a half years for student loan forgiveness. This week, President Biden issued the first of his student loan forgiveness plans. For those earning less than $125,000 a year—or couples with incomes under $250,000--up to $10,000 in federal student loan debt will be forgiven . If individuals used Pell grants to attend college (which are reserved for students with greatest financial need), up to $20,000 in federal student loan debt will be forgiven.   President Biden also this week officially extended the “ student loan payment pause” until December 31 st , 2022. Interest rates will remain at 0% until repayments start in January 2023. Biden states that this will be the last extension for student loan payments.   Mandatory student loan payments as well as interest accrual have been “on pause” since March 13, 2020, the beginning of the pandemic. 98.8% of borrowers did not make payments during this time perio...
Read more

Debt Management FAQs - Part 2

By -
What types of debts can be included in a Debt Management Plan (DMP)? You would be able to include any credit cards, personal loans, medical bills, or collection accounts. What types of debts CANNOT be included in a DMP? You would not be able to include student loans, mortgage, auto loans, or personal loans that are secured by collateral. What are the costs associated with a DMP? There is a monthly service charge of $35* (included in your monthly payment to us), and a one time initial set-up fee of $55* (payable with your first month’s payment only).  Unlike a debt settlement or debt relief agency, we do not charge fees based on a percentage of your debt, and the fees are nominal to cover administrative costs only, as we are a non-profit.  There are no “hidden” fees.  The only other fee you would ever see from CCCS is if your payment was returned (bounced check or returned ACH), and the amount of that fee is $25. *The amount of the monthly service charge and set-up fee may...
Read more

Loan Cancellation for Student Loan Borrowers Who Attended Corinthian Colleges

By -
Today, the U.S. Department of Education announced the cancellation of $5.8 billion in federal student loans for 560,000 individuals who borrowed to attend schools owned by Corinthian Colleges, the for-profit college conglomerate that is now defunct. Corinthian was a notorious repeat offender that defrauded its students and the public over many years. This loan cancellation would not have been possible without the tenacity of so many individual student loan borrowers harmed by Corinthian’s tactics. Many of them came forward to law enforcement agencies and regulators to detail systemic abuses. Others even had the courage to make their stories public to urge government authorities to act, rather than sitting on the sidelines. Over the last decade, I had the opportunity to speak with many of them to learn about Corinthian’s conduct. The Consumer Financial Protection Bureau and state attorney general actively pursued Corinthian for its misconduct. The CFPB filed a lawsuit in 2014, obt...
Read more