The 2021 Mortgage Servicing COVID-19 Rule establishes non permanent particular COVID-19 procedural safeguards that have to be met for sure mortgages earlier than the servicer could make the primary discover or submitting required by relevant legislation for any judicial or non-judicial foreclosures course of due to a delinquency.
This new CFPB rule creates extra steps that your servicer should comply with earlier than they will begin foreclosing on your own home.
These extra safeguards solely apply to your mortgage if:
- Your mortgage has been delinquent greater than 120 days after March 1, 2020; and
- The statute of limitations relevant to the foreclosures motion being taken within the state or municipality the place the property securing the mortgage mortgage is situated expires on or after January 1, 2022.
The CFPB considers these extra safeguards happy and your servicers might transfer ahead with foreclosures, if:
- You submitted a accomplished loss mitigation utility and present legislation permits your servicer to make the primary discover or submitting;
- Your property securing the mortgage mortgage is deserted below state or municipal legislation; or
- The servicer has carried out specified outreach and you’ve got been unresponsive.
This CFPB rule expires on January 1, 2022, which means that your servicer might proceed to foreclose on your property with out these extra safeguards.
A servicer should preserve data that doc actions taken with respect to a borrower’s mortgage mortgage account till one yr after the date a mortgage mortgage is discharged or servicing of a mortgage mortgage is transferred by the servicer to a transferee servicer.