In Rhode Island, multiple banks and credit unions have signed a pledge, agreeing to suspend foreclosures and provide mortgage assistance to residential homeowners during the coronavirus (COVID-19) outbreak.
For at least 60 days, the various banks and other financial institutions (see below) won't initiate foreclosure sales or evictions of Rhode Island homeowners. The foreclosure moratorium is consistent with applicable guidelines, including those from the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, as well as FHA.
Most of the participating banks and credit unions have implemented a payment-deferral program, also known as a "forbearance," of up to 90 days for residential borrowers economically impacted by COVID-19.
During the process, the financial institutions will provide borrowers with:
But don't just stop making your mortgage payments. Contact your loan servicer to ensure that you qualify for the payment suspension.
The financial institutions also agreed to waive or refund mortgage-related late fees and other fees, such as early CD withdrawals, for at least 90 days. In addition, the banks won't report derogatory tradelines, like delinquent payments, to the credit reporting bureaus if a residential borrower takes advantage of COVID-19-related relief.
The following institutions signed the pledge committing to provide a foreclosure moratorium and payment help to affected borrowers:
Effective date: April 24, 2020