How to request a mortgage moratorium

The economic fallout from the ongoing Covid-19 pandemic has left many homeowners struggling to make their mortgage payments. If you find yourself facing financial hardship due to job loss, reduced income, or other circumstances, you may be eligible for a mortgage moratorium. A mortgage moratorium is a temporary suspension or reduction of your mortgage payments, allowing you to navigate through these challenging times. Here are the steps to request a mortgage moratorium:

1. Contact your mortgage servicer: The first step is to reach out to your mortgage servicer, the company that manages your mortgage account. Look for their contact information on your monthly statements, their website, or any correspondence you’ve received. They will be able to provide you with specific guidance on how to request a mortgage moratorium.

2. Prepare your documentation: Before contacting your mortgage servicer, gather all the necessary documentation to support your request. This typically includes proof of financial hardship, such as a termination letter, pay stubs showing reduced income, or medical bills. It’s essential to have these documents ready to demonstrate your need for a mortgage moratorium.

3. Understand eligibility criteria: Each mortgage servicer may have specific eligibility criteria for granting mortgage moratoriums. It’s crucial to understand these requirements before making your request. For instance, some lenders may require that you are current on your mortgage payments or have experienced a significant reduction in income. Familiarize yourself with the specific guidelines to ensure you meet the requirements.

4. Initiate the request: Once you have your documentation ready and know the eligibility criteria, contact your mortgage servicer to begin the mortgage moratorium request process. Be prepared to explain your financial situation and provide the necessary documentation to support your claim. Many mortgage servicers have dedicated channels or online portals specifically for handling these requests.

5. Follow-up with written communication: After you have initiated the request, it’s crucial to follow-up with written communication. Send an email or letter to your mortgage servicer confirming your conversation, summarizing the details discussed, and attaching any necessary documents. This step helps maintain a record of your request and ensures that it is properly documented.

6. Be patient and persistent: The demand for mortgage moratoriums has surged due to the pandemic, resulting in delays and overwhelmed mortgage servicers. It’s crucial to be patient and persistent. Follow up on the progress of your request regularly and document each communication you have with your mortgage servicer. This persistence will increase your chances of obtaining a mortgage moratorium.

7. Understand the terms and conditions: If your mortgage servicer approves your mortgage moratorium request, make sure you understand the terms and conditions thoroughly. Determine whether the moratorium pauses your payments entirely or reduces your monthly payments during the moratorium period. Additionally, clarify how missed payments will be handled, whether they will be added to the end of the mortgage term or spread out over future payments.

8. Continue to monitor your mortgage account: Even after obtaining a mortgage moratorium, it’s essential to actively monitor your mortgage account. Ensure that the moratorium is accurately reflected in your statements and that there are no errors or discrepancies. If you encounter any issues, contact your mortgage servicer immediately to address them.

Remember, a mortgage moratorium is a temporary solution. It provides relief for a specific period, typically for a few months. Once the moratorium expires, your regular mortgage payments will resume, and any missed payments will need to be made up. If you continue to face financial hardship, consider reaching out to your mortgage servicer to explore alternative long-term solutions.

In challenging times like these, a mortgage moratorium can provide much-needed breathing room for homeowners struggling to make ends meet. By following these steps and being proactive in your communication with your mortgage servicer, you can navigate through these difficult times and find relief through a mortgage moratorium.