Know Your Rights
As of July 31, 2021 the Foreclosure Moritorium has been lifted. Now is the time to be pro-active, not re-active!
NYS Eviction Moritorium has been extended to October 31, 2021.
*List of banks offering help to customers impacted by the corona-virus
*COVID-19 Mortgage Forbearance: What To Know Before You Delay Payment
Fannie and Freddie released essentially identical sets of guidelines for borrowers and lenders about single-family mortgages:
Mortgage forbearance provided to reduce or suspend payments for up to 12 months.
Lenders must suspend reports to credit bureaus of past-due payments for borrowers in a forbearance plan
No penalties or late fees for homeowners in a forbearance plan
After forbearance, lender is mandated to "work with the borrower on a permanent plan to help maintain or reduce monthly payment amounts as necessary, including a loan modification," states Fannie Mae.
Homeowners "adversely impacted by this emergency," in the words of Fannie Mae, "may request mortgage assistance by contacting their mortgage servicer."
*Deficiency Judgments after Foreclosure
*Mortgage Forbearance Agreements vs. Loan Modifications
While a mortgage forbearance agreement provides short-term relief for borrowers, a loan modification agreement is a permanent solution to lower monthly payments. With a loan modification, the lender can work with the borrower to do a few things (such as reduce the interest rate, convert from a variable interest rate to a fixed interest rate or extend the length of the loan term) to reduce the borrower's monthly payments.
In order to be eligible for a loan modification, the borrower must show that he or she cannot make the current mortgage payments because of financial hardship, demonstrate that he or she can afford the new payment amount by completing a trial period and provide all required documentation to the lender. The documentation the lender requires could include a financial statement, proof of income, tax returns, bank statements, and a hardship statement.