KNOWING YOUR RIGHTS AS A HOMEOWNER

            As the country struggles to grasp the short and long term impact of the COVID-19 virus, it is very important for people to understand what will happen if they fall behind on their mortgage payments.

            As of right now, there is no uniform policy that governs all loans. Your level of protection depends on the investor/owner of your loan. If it is owned or backed by the federal government (such as FHA, VA, or Fannie/Freddie Mac loan) then you will have a 60 day stay before any foreclosure action can be taken. If a private investor owns your loan, that investor will decide what action is taken. There is no guarantee that they will offer any forbearance or hold off on filing a foreclosure action against borrowers who do fall behind in their payments.

            Below are some resources and tips to help determine the owner of your mortgage loan and what protections you have during this uncertain time.

• Fannie Mae and Freddie Mac have easy loan look-up websites to determine if they own a mortgage. See https://ww3.freddiemac.com/loanlookup/ and https://www.knowyouroptions.com/loanlookup#.

• To determine if a loan is FHA-insured, look for an FHA case number on the mortgage document, specific language in the mortgage and note forms, or through the payment of an FHA premium on the mortgage statement. In some cases, unfortunately, loans may have been stripped of their FHA-insured status; call HUD’s National Servicing Center at 877-622-8525 if there are questions.

• A VA-guaranteed loan also has specific language in the note and mortgage identifying it as a VA loan, and there are fees paid to the VA noted in closing documents.

            If you find yourself facing the prospect of a foreclosure, please immediately contact a qualified foreclosure defense attorney to discuss your options. Do not wait to take action, the sooner you make a plan, the more likely you are to save your home.