Care Act Mortgage Forbearance Can Apply To Reverse Mortgages
Federally Backed Mortgages are eligible for a Mortgage Forbearance under the CARES Act. Most Reverse Mortgages are “Federally Backed.” The forbearance should be an initial period of 180 days and can be for up to one (1) year if you can represent that you are experiencing financial difficulties based on COVID-19. The request for Forbearance must be made before the President ends the emergency, or December 31, 2020, whichever comes first.
IT DOESN’T MATTER HOW FAR BEHIND YOU WERE WHEN THE EMERGENCY STARTED, OR EVEN IF YOU ARE IN FORECLOSURE. YOU MAY HAVE THE RIGHT TO THE FORBEARANCE.
A forbearance agreement is one type of short-term relief being offered by many loan servicers. The loan servicer agrees to reduce or suspend your payments for a set amount of time. This provides for a temporary period of time when you do not have to make your full monthly payments. However, the payments are not waived or forgiven; you will have to pay them back. In many situations, you will have to make the missed payments in a lump sum at the end of the forbearance period.
If you need help to understand your options regarding mortgage forbearance in New Jersey, Ira J. Metrick can be reached at [email protected] or 732-462-7000.