Mortgage protections for those impacted by Covid-19
The US Federal Government recently passed the CARES Act. It contains 2 very important protections for mortgage borrowers:
- A foreclosure moratorium – prohibits a mortgage servicer of a federally backed mortgage loan from initiating the filing or advancement of foreclosure proceedings or the execution of foreclosure-related evictions or sales for a period of 60 days starting on March 18th, 2020. This protection has recently been extended to August 31st, 2020.
- A right to forbearance – for homeowners who are financially affected due to the pandemic. Forbearance is the temporary postponement of mortgage payments. The CARES Act provides forbearance for up to 180 days for borrowers with federally backed mortgages. An additional 180 day extension can also be requested.
If you are experiencing difficulty making your mortgage payment as a result of Covid-19, contact your loan servicer to discuss what options might be available to assist you.