Massachusetts’ 180-Day Mortgage Payment Forbearance

Mortgage-Forbearance

On April 20, 2020, the Massachusetts legislature enacted a moratorium on evictions and foreclosures.

The Act includes a provision that allows homeowners to receive an automatic 180-day forbearance on their mortgage payments.

The provision reads as follows:

A creditor or mortgagee shall grant a forbearance to a mortgagor of a mortgage for a residential property…if the mortgagor submits a request to the mortgagor’s servicer affirming that the mortgagor has experienced a financial impact from COVID-19.

No additional interest, fees, or penalties can be added to your loan due to this request.

In addition, your lender cannot report your delayed payments to credit bureaus.

Nevertheless, the 180 days of delayed payments will be added to the principal of your loan and you will likely have a slightly larger monthly payment when the forbearance expires.

To request the forbearance start by calling your mortgage servicing company.  Their phone number should be on your monthly statement.  Some mortgage companies may approve the forbearance over the phone.  Others may require the request to be made in writing.

If your mortgage company requires a written request, ask them if they have a request form that you can use.  If they do not, you can use the example below for a template.

Your Name and Address

Date

Mortgage Servicer’s Name and Address

RE: Request for a 180-Day Mortgage Payment Forbearance pursuant to Massachusetts’ Session Law Acts of 2020, Chapter 65, Section 5(b); Account #:_____________________; Borrower Name(s): _______________________; Property Address:___________________________.

Mortgage Servicer,

I hereby affirm that I have experienced a financial impact from COVID-19.  Pursuant to the above-referenced Act, I request a 180-day forbearance on my mortgage payment.

Sincerely,

Your Name

If you need legal representation, please contact me at justin@jrmccarthy.com

 

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