Can My Mortgage Company Foreclose on My Home During COVID-19?
Recently passed federal laws can help to protect your home from foreclosure if you are behind in payments due to the COVID-19 pandemic.
COVID-19 has wreaked havoc in every area of our lives. Alongside health concerns, business closures due to the pandemic resulted in massive job losses in Philadelphia and in cities across the United States. As a result, many families are struggling to make their mortgage payments. To help during this difficult time, the federal government passed a massive stimulus package. One of the key provisions it includes is foreclosure protection. If you are in danger of falling behind in your payments or are currently facing the prospect of a foreclosure, find out how new policies and procedures put in place due to COVID-19 could help save your home.
Protection Against Foreclosure During the COVID-19 Pandemic
Amidst growing concerns about the COVID-19 pandemic, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020. One of the most massive federal spending packages in history, it was designed to provide direct assistance to workers and their families amidst pandemic related shutdowns while boosting businesses and stimulating local and national economies.
Among the key provisions included in the CARES Act was mortgage protection. As a result of the pandemic, millions of people filed for unemployment and suffered dramatic decreases in income. The CARES ACT provides protection for these people against losing their homes. These include:
- The right to request a forbearance on your mortgage payments for up to 180 days: This can allow you up to six months to miss your mortgage payments without accruing any interest or fees. You may also be able to request an additional 180-day forbearance at the end of the initial period if your income continues to be impacted by the COVID-19 pandemic.
- Prohibitions on lenders against foreclosing on properties that extend through August 2020: The CARES Act prevents certain lenders and mortgage servicers from initiating foreclosure proceedings on homeowners who fall behind in their payments and from finalizing a foreclosure judgment. Depending on the circumstances surrounding the pandemic, the August 2020 deadline may be extended.
Does the CARES Act Protect My Home from Foreclosure?
In general, federal law prohibits lenders from initiating foreclosure proceedings against you until you are 120 days past due on your mortgage payments. Under the CARES Act, they were originally prohibited from initiating a foreclosure, holding a foreclosure sale, or evicting you from your home at least until the end of May 2020. The Federal Housing Finance Agency extended this deadline to August, but it does not apply in all cases. Lenders and servicers that are covered include:
- FHA insured loans;
- VA loans;
- USDA loans;
- Mortgages serviced through Fannie Mae or Freddie Mac.
Contact Philadelphia Foreclosure Lawyer George Tadross for Help
If you are facing the prospect of foreclosure or have concerns about making your mortgage payments, reach out to Tadross Law. Contact me by phone at (267) 296-9300 or ask me about foreclosure in Philadelphia online to request a free case evaluation today.