The first priority of Emerald Home Loans is the health and safety of our team members, clients and communities. If you are facing financial struggles related to COVID-19 that are impacting your ability to make your mortgage payments, please see the information below regarding new mortgage relief options:
Overview of The Coronavirus Stimulus Bill
Anyone facing a financial hardship from coronavirus shall be given a forbearance on a federally backed mortgage loan of up to 60 days, which can be extended for four periods of 30 days each.
The legislation says that services of federally back mortgage loans may not being in the foreclosure process for 60 days from March 18, 2020.
The bill also does not allow fees, penalties or additional interest to be charged as a result of delayed payments. It includes similar protections for those with multifamily federal mortgage loans, allowing them to receive a 30-day forbearance and up to two 30-day extensions.
Here’s What You Should Know:
Credit Reporting: Servicers must not report to the credit agencies a Borrower who is on an active forbearance, repayment, or trial period plan due to COVID-19 related hardship.
Forbearance Plans (a temporary pause of your mortgage payments): Servicers may approve forbearance plans for all Borrowers who have COVID-19 related hardship, regardless of property type.
Loan Modifications: Servicers must conduct Modifications on Borrowers impacted by COVID-19 related hardship as long as the Borrower was current as of the date of the national emergency declaration on March 13th, 2020.
Foreclosure: Servicers must suspend all foreclosure sales for the next 60 days. Note this does not apply to properties that are vacant or abandoned.
The Forbearance Process Explained
Continue to Make Your Mortgage Payments
Forbearance does not mean your responsibility to pay is waived. It is not a deferment. This is one of the most misunderstood parts of the process.
At the end of the three months (or whatever number of payments is granted by the servicer), you must pay that month's payment, plus what is owed. This is usually due in one lump sum, or possibly extra payments over time.
Contact Your Servicer
If you’re concerned about making your mortgage payments due to job loss or reduction in hours, please reach out directly to your servicer ( the lender you make a payment to every month) to get more details on the forbearance policy and to find out how you can negotiate payment terms that will meet your individual needs.
Once the time frame is up, your servicer will work to reevaluate your situation to determine the best course of action. If you’re ready to resume payment, they will move toward payment options.
Keep checking back! This is a fluid situation, so we will post updates for you as we get them.