Legal Services creates guide to inform on moratoriums in times of COVID-19
Consumers who have sought mortgage moratoriums due to the COVID-19 pandemic have a new educational tool on their loss mitigation alternatives once the moratorium ends, in the “Guide for mortgage moratoriums in times of COVID-19,” created by Puerto Rico Legal Services.
The nonprofit noted that banking sector data show that more than 90,000 loans in Puerto Rico were put under payment moratoriums as a result of the coronavirus pandemic, most of them guaranteed by federal agencies.
“We have created this guide to let people know their loss mitigation alternatives according to their type of mortgage loan so that they’re better prepared for the possible scenarios in which they will be evaluated by their bank during a mitigation process, once these moratoriums end,” said Rafael A. Rodríguez-Roselló, manager of the nonprofit’s Help Project in foreclosure cases.
The guide is free to download on Puerto Rico Legal Services’ website.
“Our experience in the representation and daily litigation of these cases is that people are unaware of the tools available to protect their right to housing and avoid the foreclosure of their property,” said Rodriguez-Roselló.
“With the guides we want people to learn about these processes and the alternatives they have according to their type of loan. It’s not enough to fill out a mitigation document, that’s the start of the process,” he said.