While the CARES Act only applies to federally backed mortgage loans, other mortgage assistance options are available if your mortgage loan isn’t federally backed. You can also find this information by visiting agency websites associated with federally backed loans. The easiest way to determine if your loan is a federally backed loan is to call us at (877) 735-3637. If your loan is a Fannie Mae, Freddie Mac, FHA, VA, or USDA loan, then it qualifies as a “federally backed” mortgage loan. It is also important for you to keep in touch with us during the forbearance period so that we are aware of any additional changes in your financial condition that might occur.Īdditional documentation may be required to evaluate other payment options depending on the investor or agency requirements, the total amount of missed payments, and any prior delinquency.Ī federal law, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, offers certain protections to homeowners with federally backed mortgages. Selene Finance LP will work with you to evaluate your financial situation and identify the options available. Reinstatement: If you are able, reinstatement is repayment of the entire amount due at once. No payments are due on the COVID-19 Standalone Partial Claim until the payoff, maturity, or acceleration of the mortgage, including the sale of the property or a refinancing, or the termination of FHA insurance on the mortgage.Įxtension of the Term of Your Loan: Suspended payments from the forbearance are placed at the end of the loan in the form of additional monthly payments that will extend the current loan term and maturity date. HUD Partial Claim: HUD’s COVID-19 Standalone Partial Claim is a no interest, junior loan secured by your property. You will be responsible for paying the past-due amounts upon the maturity date of the mortgage or earlier upon the sale or transfer of the property, refinance of the mortgage loan, or payoff of the interest-bearing unpaid principal balance. A modification may involve a change in your interest rate, an extension of the time for repayment, a change in the principal balance, or any/all of these options.ĭeferment: A payment deferral may bring your mortgage current and delays repayment of certain past-due monthly principal and interest payments. Loan Modification: A modification would permanently change the terms of your mortgage to bring your account current. These payments would be in addition to your normal monthly payment. Repayment Plan: A repayment plan is a structured way to make up your missed mortgage loan payments over a certain period of time. Additional options to assist you in addressing the delinquency after the forbearance period may include:Īn Additional Forbearance: You may be able to continue the forbearance for an additional period of time. You may also be eligible for a forbearance if you are in an active Chapter 13 bankruptcy payment plan or if you previously received a discharge from personal liability and you have made voluntary mortgage payments following that discharge.Īt least thirty (30) days prior to the end of your forbearance period, we will contact you to discuss your current circumstances and all resolution options that are available to you. You may be eligible for a forbearance even if you are already delinquent on your payments. No negative credit reporting during the forbearance period.įoreclosure proceedings will not be initiated and existing foreclosure processes, including sales, are placed on hold. If and when your income is restored, contact us and resume making payments as soon as you can so your future obligation is limited.ĭuring the forbearance period, you will also receive the following benefits: See FAQ below “What happens at the end of the forbearance?” We will work with you, subject to applicable law and investor guidelines, to identify loss mitigation options to avoid a lump sum payment. You are still required to repay any missed or reduced payments at the end of the forbearance period unless other arrangements are made. A forbearance plan allows borrowers experiencing a temporary hardship to make a reduced mortgage payment or no mortgage payment for a limited period of time while you regain your financial footing.įorbearance doesn’t mean your payments are forgiven or erased.
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