Will COVID-19 Forbearance Hurt My Credit Report?
During the ongoing COVID-19 situation, many New Jersey homeowners are receiving relief on their mortgage payments and are concerned about how this might affect their credit score.
If you were current on your mortgage payments at the time you received the Forbearance due to COVID-19, your lender is not allowed to report that you are in default.
You are entitled to one (1) free copy of each of the three (3) major Credit Reporting Agencies (Equifax, Experian, and TransUnion) each year.
If your lender is incorrectly reporting you in default due to COVID-19 forbearance, contact the law office of Ira J. Metrick today.
Here is some more helpful information about Coronavirus mortgage relief for NJ homeowners.
Am I Eligible for COVID-19 Mortgage Forbearance?
Governor Phil Murphy enacted a relief initiative for New Jersey homeowners unable to make their mortgage payments due to the Coronavirus, effective March 28th. Under this plan, residents facing hardship due to the pandemic may be eligible for:
- A 90-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
COVID-19 Forbearance for Government Loans
The forbearance should be for an initial period of One Hundred Eighty (180) days, and can be extended 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 still have the right to the forbearance.
What Happens After Mortgage Forbearance?
While COVID-19 forbearance should not affect your credit score, it is important that homeowners understand what will happen at the end of the forbearance. 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 attorney representation and assistance with New Jersey mortgage issues related to COVID-19, contact Ira J. Metrick today for a free consultation.