The government is warning delinquent borrowers that, despite a suspension of foreclosures by some mortgage firms, they should not ignore any notices from their servicers.
The warning came Monday from the Federal Trade Commission.
“Stories about a ‘freeze’ or ‘moratorium’ on mortgage foreclosures are in the headlines,” the agency said. “So it’s no surprise if you’ve heard that some mortgage lenders are stopping foreclosures while their paperwork is investigated to be sure it’s in order.”
But the freeze doesn’t necessarily mean that foreclosure proceedings have stopped, and severely delinquent borrowers should not make the assumption that their mortgage won’t be foreclosed.
The FTC said that regardless of the news, notices from mortgages servicers or the sheriff’s office cannot be ignored.
“If you get a notice about your mortgage, pay attention to it,” the announcement said. “Call the sender — whether it’s your bank, your servicer, or the sheriff — right away.”
