Mortgage Assistance During COVID-19
If you’re concerned about your ability to make your mortgage payment due to COVID-19, we’re offering a 3-month forbearance on mortgages for those who have been affected by this crisis.
What is a forbearance?
A forbearance is a temporary pause of your mortgage payment. This relief assistance is available for those who have been financially impacted due to COVID19. This may be due to layoff or reduced hours or if you are not being paid because you are ill or can’t work due to caring for a sick family member. It’s important to note that a forbearance related to COVID-19 won’t have a negative impact on your credit. Also during the forbearance period we will not charge late fees and we will not start a foreclosure.
Who should apply for assistance?
If you’re among those financially impacted by the coronavirus pandemic, a forebearance plan may provide short-term relief in regards to your decrease in cash-on-hand until you are better off. There’s help, but it is important to first assess your situation.
If you can pay your mortgage, pay your mortgage. Deferring other expenses will most likely be less costly in the long run. The key is to find out who’s offering what in terms of leniency. This proactive effort is the best way to determine what bills need to be paid now, and which ones can wait. If there are any expenses you can cut, do so at your discretion. The first priority at this time is the health and safety of your family.
If you can’t pay your mortgage, or can only pay a portion, there are important things to know first. Forbearance does not erase the amount you owe on your mortgage and it does not advance your due date. It is only a delay of payments and interest on the paused amounts will continue to accrue until you repay them. You should pay close attention to how you will have to pay back any missed or reduced mortgage payments. There are three ways to go about that:
Paused Payment to Lump Sum: You may owe a big bill that comes due all at once, the 3 months you skipped plus the current month. If you can afford it, the simplest thing to do is to pay off the whole amount you owe. That sounds like a big chunk, but one of the options you have is to pay whatever you can during the forbearance in order to cut down on the amount you owe at the end. Still, we understand not everyone has the money, so there are other options.
Repayment Plan: The second option is to go on a repayment plan. With this, you make your regular mortgage payment plus some extra in order to pay off the amount you still owe from your forbearance over a set period of time.
Modification: By modifying your loan, we can roll the balance back into the mortgage, deferring the missed principal and interest payments until pay off or at maturity. All requests will be reviewed on a case-by-case basis. Borrower(s) will still be responsible for any escrow portion, which may include taxes and insurance during the forbearance/modification. These amounts cannot be included in the amounts deferred until payoff or maturity. If you are not able to pay these amounts in full at modification, the escrow shortage can be spread out, generally over 12 months, which will would increase your total mortgage payment until these amounts are satisfied.
Please note: Modifications may require additional services, therefore, borrowers may be responsible for additional expenses such as title searches and recording fees. Those charges generally must be paid by the borrower at the time the modification is executed.
How to get started:
In order to be considered for a forbearance or payment modification, you must first let us know about your circumstances and how you are impacted. Deferment is not automatic.
Online: Click here to electronically complete an application for assistance.
By Mail: Click here to download an application. Once completed, please mail it to 1 Commerce Street, Poughkeepsie, NY 12603 – ATTN: Mortgage Servicing
By Phone: If you are unable to complete the online or PDF application, please call us and we will mail you a form.
Once the crisis is over, we would work with you to determine the best course of action when you’re ready to resume payments.
This is a fluid situation, so we’re going to be posting updates for you as we get them.