If you live in New York, and your deadline for mortgage forbearance is rapidly approaching, there are options you should be aware of.
What Are Your Options if Your Forbearance is Ending?
If you are more financially sound than you were at the beginning of your forbearance, you have a few options:
However, if you are still financially struggling due to COVID-19 related reasons (illness, unemployment, etc…), there still may be some help.
New York State Mortgage Forbearance – Section 9-x
Do you have a mortgage backed by a bank in New York? Due to the COVID-19 pandemic, on July 17, 2020, New York signed into law an update to their banking rules. One of these rules, Section 9-x, contained new parameters on mortgage forbearance when it comes to New York regulated banking organizations.
Part of Section 9-x is directed towards persons behind on their mortgages due to COVID-19 and says that if the lender cannot offer a modification acceptable to the borrower, then it needs to put what is owed on the back of the loan (see deferral or partial claim above).
Another part requires banks (and other lending entities) offer up to 180 days of forbearance to qualified mortgage holders. If you have passed that 180-day threshold, and can still demonstrate continued hardship, you can be offered an additional 180 day forbearance.
For more information on Section 9-x:
Federal Mortgage Forbearance – Section X
If you have a federally backed mortgage (such as Fannie Mae, Freddie Mac, HUD/FHA, VA, and USDA), you may also be able to ask for an extension. For Fannie Mae, Freddie Mac mortgages, you must have been in an active forbearance plan as of February 28, 2021. For HUD/FHA, VA, and USDA you must have been in an active forbearance plan as of June 30, 2020.
On June 28, 2021, the Consumer Financial Protection Bureau (CFPB) released a new program – Protections for Borrowers Affected by the COVID-19 Emergency Under the Real Estate Settlement Procedures Act (RESPA), Regulation X.
Starting on August 31, 2021, and ending on December 31, 2021, this new rule offers certain additional COVID-19-related loan modification options.
Reaching Out for Help
There are a number of ways the right Mortgage Forbearance lawyer can guide you through the various rules and regulations that seem to be changing almost every day.
If you live in New York, and you’d like to talk directly to a compassionate, knowledgeable, human being, reach out to New York Mortgage Forbearance attorney Ronald Weiss for a free consultation. He can walk you through the process of getting the help you need. Call 631-271-3737 and take the first step to a fresh start.