A new federal law, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, offers certain protections to homeowners with federally backed mortgages.

If your loan is a Fannie Mae, Freddie Mac, FHA, VA, or USDA loan, then it qualifies as a “federally backed” mortgage loan. The easiest way to determine if your loan is a federally backed loan is to call us at (877) 735-3637. You can also find this information by visiting agency websites associated with federally backed loans.

While the CARES Act only applies to federally backed mortgage loans, other mortgage assistance options are available if your mortgage loan isn’t federally backed. Please contact us to discuss your financial hardship.

A borrower with a federally backed mortgage loan experiencing a financial hardship due, directly or indirectly, to the COVID-19 pandemic may request a forbearance by:

• Submitting a request to Selene Finance LP; and
• Affirming that he/she is experiencing a financial hardship during the COVID-19 pandemic.

There are no additional fees, penalties or interest beyond the amounts normally due added to the account. You do not need to submit additional documentation to qualify other than your claim to have a pandemic-related financial hardship.

If your loan is federally backed and you are struggling financially due to a COVID-19 related hardship, you have the right to request a forbearance period of up to 180 days. You also have the right to request an extension for up to another 180 days. You also have the option to shorten the forbearance period at any time and resume payments if you are able to do so.

When the forbearance period ends, you will be responsible for resolving the payments that were due during the forbearance period; however, you will not be required to make a “lump sum” repayment.

Bankruptcy: If you have a federally backed loan, are in an active Chapter 13 payment plan, and are experiencing a material financial hardship due to the coronavirus pandemic, we recommend that you speak with your bankruptcy attorney. Under the CARES Act you may be able to seek a forbearance and temporarily suspend monthly loan payments, provided that notice of the forbearance is filed with the court and served on the trustee and other parties in interest. At the end of the forbearance period, you may need to seek a modification of your mortgage loan, your Chapter 13 plan, or both. Modifications are subject to court approval and may include an extension of Chapter 13 plan payments for up to seven years after the initial plan payment. If you previously received a discharge from personal liability and are making voluntary mortgage payments, you still may be able to seek a forbearance and temporarily suspend voluntary monthly loan payments, and any such forbearance plan will not revive personal liability under the loan. Please consult with your bankruptcy attorney for advice.

For non-federally backed loans, certain investors are allowing borrowers in bankruptcy to request a forbearance. Please contact us if you would like to know whether you are eligible for a forbearance due to a COVID-19 financial hardship.

If you are a resident of District of Columbia, Oregon, Maryland, or New York, you may be eligible for a forbearance under your jurisdiction’s unique laws.

• District of Columbia: If you are a resident of the District of Columbia who is experiencing a COVID-19 related financial hardship, you have the right to request a forbearance period of up to 90 days.
• Maryland: If you are a resident of Maryland who is experiencing a COVID-19 related financial hardship, you may have the right to request a forbearance period of up to 180 days. You may also have the right to request an extension for up to another 180 days.
• New York: If you are a resident of New York who is experiencing a COVID-19 related financial hardship, you have the right to request a forbearance period of up to 180 days. You also have the right to request an extension for up to another 180 days.
• Oregon: If you are a resident of Oregon who is experiencing a COVID-19 related financial hardship, you have the right to request a forbearance period for the months of March through December, 2020.

Each jurisdiction has some specific criteria and we can determine if you qualify for the forbearance when you contact us. If you have a federally backed mortgage, you still have the rights available to you under the CARES Act, as noted above. You also have the right in each of these jurisdictions to shorten the forbearance period at any time and resume payments if you are able to do so. Each of the four jurisdictions has options for resolving your delinquency after the forbearance period that we will discuss with you.

You can request a forbearance under these laws through any of the ways outlined above under “How to contact Selene Finance LP“.

Credit reporting: If your loan is current at the time of entering into a forbearance plan, then each month you are in the forbearance plan we will report the status of the account to the credit reporting agencies as current. If, however, your loan was delinquent prior to entering into a forbearance plan, we will maintain the prior delinquency status during the period of the forbearance. It is important that you work with us to resolve any delinquency during or after any forbearance period, as reporting of a delinquency status may resume after the forbearance period ends if a resolution option is not completed. Individual circumstances vary, so while we will accurately report to the credit reporting agencies, we are uncertain as to the impact a forbearance plan may have on your credit score.

Foreclosure and eviction moratorium: The CARES Act prohibits lenders and servicers from beginning a judicial or non-judicial foreclosure against federally backed mortgage loans, or from finalizing a foreclosure judgment or sale, for 60 days beginning on March 18, 2020, unless the property is vacant or abandoned. Lenders and servicers are also prohibited from executing a foreclosure-related eviction during this time. The initial foreclosure and eviction moratorium has been extended through December 31, 2020 for Fannie Mae, Freddie Mac, FHA, and VA loans.

For non-federally-backed mortgage loans, many states have also implemented moratoriums on foreclosures and evictions. Please consult with your foreclosure counsel.