During the ongoing COVID-19 situation, many New Jersey homeowners are receiving relief on their mortgage payments through mortgage forbearance. This new situation is leading to some uncertainty on a few issues, including whether or not your lender can move forward with foreclosure during the relief period.
Can My Lender Pursue Foreclosure During Mortgage Forbearance?
A mortgage forbearance agreement is a short-term relief option being provided by many different loan servicers to borrowers facing hardship due to COVID-19. The terms of this agreement might include:
- A 90-180 Day Grace Period for Mortgage Payments
- Waived or Refunded Fees and Charges for 90 Days
- No New Foreclosures for 60 Days
- No Credit Score Changes Due to Coronavirus Relief
If you were facing foreclosure when your mortgage forbearance agreement took effect, your agreement might specifically state that the foreclosure would be put on hold. If this is the case, your lender must adhere to the agreement and is not allowed to pursue the foreclosure during the relief period.
I’m Not Sure If My Foreclosure is On Hold. What Should I Do?
If your lender is pursuing foreclosure during forbearance, it is important to check the terms of the original forbearance agreement. If they agreed to suspend foreclosures during this time, they are prohibited by law from moving forward in any way, such as filing for summary judgment or scheduling a sheriff sale.
If it is not explicitly stated in the agreement whether foreclosures are suspended, or you are not sure, contact the law office of Ira J. Metrick today. We will review your forbearance agreement and determine whether your lender is allowed to pursue foreclosure during this time. If your lender is illegally pursuing foreclosure during forbearance, we can take legal action against them.
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