COVID-19 Mortgage Forbearance is Ending June 30, 2021
On March 19, 2020, New Jersey Governor Phil Murphy issued Executive Order 106, which suspended eviction and foreclosure removals throughout the state. On March 28th, Murphy announced that financial institutions would be providing mortgage forbearance for NJ residents facing hardship due to the COVID-19 pandemic. This mortgage forbearance period did not eliminate or forgive debts, but gave homeowners time to deal with the economic fallout of the pandemic.
During this mortgage forbearance, new foreclosures for federally backed loans have been on hold, but they are currently scheduled to resume on June 30th, 2021. In order to prepare for this, it’s important for homeowners on a Forbearance to develop a plan about resuming mortgage payments. If the loan was in default at the time the Forbearance started, the best option may be applying for a loan modification.
What Information Do I Need to Apply for a Loan Modification?
In order to best assess your options for a loan modification, it’s crucial that you know your mortgage owner and servicer.
- Your servicer is normally the company that is sending you the monthly mortgage statements. The monthly statement will have necessary information like the loan number, interest rate, payment amounts, amounts due, and the address that can be used to communicate with the servicer.
- Knowing the owner (or investor) can be the most important piece of information and will tell you what types of modifications may be available to you. You can try to find out the owner by calling the servicer, but the best way is to send a written Request for Information (RFI) to the servicer and ask the name of the owner.
Call Us Today To Learn More About Loan Modifications
New Jersey foreclosures are resuming on June 30, 2021. If you are falling behind on your mortgage payments and facing foreclosure, a loan modification is the best way to stop the foreclosure and stay in your home. In order to apply for a loan modification, it is critical that you act fast and have the necessary information. If you need more information regarding loan modifications, including who your servicer/owner is and how to apply, our law firm has the resources and experience to offer the best representation for loan modifications in New Jersey. Contact Ira J. Metrick today to learn more.