Mortgage Foreclosure FAQs
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Mortgages and COVID-19 FAQ
Borrowers in Default or Foreclosure Please Call: 716-855-0202 ext. 118
I have seen on the news that mortgage payments are suspended for 90 days. Should I just stop making my mortgage payments during this time?
NO! You should continue to make mortgage payments until you have been approved for payment relief by your servicer. If you are unable to make your mortgage payments, you MUST speak with your loan servicer and follow any application process they require to approve you for a forbearance of payments. Stopping payment without approval from your servicer could have dire consequences with respect to your loan.
Is my loan servicer required by law to suspend my payments if I am unable to pay due to circumstances stemming from Covid-19?
It depends. Loans owned by or backed by the U.S. government (eg. FHA, Fannie Mae, Freddie Mac, and some loans held with national private banks) will have different payment suspension requirements under the law than those that are not. If you are experiencing financial hardship due to Covid-19, please contact your loan servicer BEFORE you stop making payment. It may be difficult to get through at this time, but it is necessary to be approved by the lender for payment relief.
My loan servicer told me over the phone that I could stop making payments, is there anything more I need to do?
It is strongly recommended that you get all reduced or deferred payment offers in writing before you halt your payments. Additionally, make sure to get the following information from your servicer in writing, if possible:
- When regular payments are set to resume?
- Whether the forbeared payments will accrue interest?
- How will deferred payments be paid back and by when?
- Are there various options for repayment of forbeared payments? When will you be reviewed for those options?
- Will the servicer be reporting the forbearance period to credit reporting agencies as delinquent?
I have been approved for a forbearance of my payments, are those payments being “waived” by my servicer?
No! Any payments that are unpaid due to a servicer approved forbearance period will need to be repaid. It is important to find out from your servicer what the terms of repayment will be once the forbearance period ends. Repayment options are not automatic and it is likely servicers will require borrowers to apply for repayment approval. There is no guarantee that you will be approved for a repayment option, so only use forbearance during this time as a last resort and only forbear for as long as is absolutely necessary!