Last week, the Trump administration passed a $2 trillion stimulus relief package to help American businesses and individuals get through the coronavirus pandemic. The relief? A one-time check for a maximum amount of $1,200 per person. Check here to see how to get the check!
For homeowners around the country, that’s nowhere near enough to cover their mortgage, which has left citizens wondering just how they’re going to pay off their mortgage loan amidst such uncertain economic times.
Forget about using a mortgage calculator to find out how much you’re going to owe in the coming months. Coronavirus mortgage relief is available, and both the Federal Housing Finance Agency and local mortgage companies are working together to ensure you make it through this crisis.
Delay Making Monthly Payments
Depending on who your mortgage loan is with, you might be able to defer payments if coronavirus has caused you to lose your job or experience financial hardship. According to the Federal Housing Finance Agency, Fannie Mae, Freddie Mac (the Enterprises) and the Federal Home Loan Banks are providing relief.
During the temporary relief period, they’ve noted that you won’t incur late fees, you won’t have delinquencies reported to the credit bureaus, and foreclosure and other legal proceedings will be suspended. Furthermore, this mortgage relief is extended to include owners of multi-family homes as well.
They’re offering multifamily property owners mortgage forbearance with the condition that they suspend all evictions for renters unable to pay rent due to the impact of coronavirus. The eviction suspensions are in place for the entire duration of time that a property owner remains in forbearance.
Get Familiar with the CARES Act
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a new federal law aiming to provide economic relief and aid to those who have been affected in some way by coronavirus and the subsequent pandemic.
According to Consumer Reports, the CARES Act is one that all homeowners who are still paying on their mortgage should understand. Namely, it puts into place a few key things. The two protections for homeowners with federally backed mortgages include a foreclosure moratorium and a legal right to forbearance for homeowners who are experiencing financial hardship due to the COVID-19 emergency.
Don’t have a federally-backed mortgage? Experts suggest contacting your mortgage servicer directly. However, they’re noting that if you can pay your mortgage, go ahead and do so to avoid further backing up the customer service phone lines.
It’s also worth noting that even if your loan isn’t federally-backed, you might be able to receive assistance under state law. Many states are implementing various mortgage relief options that will also provide additional assistance for homeowners. Check your state’s Department of Housing website or call to see what options are available to you.
Contact Your Mortgage Lender
The government is strongly encouraging local mortgage servicers such as Freedom Mortgage and Rocket Mortgage to be lenient with homeowners. So, it’s worth calling your servicer to speak with them directly about your specific situation.
Others have noted that they’ve had to answer specific financial questions to evaluate the situation and determine why you’re unable to pay and where the options are. These questions might include having to explain why you’re unable to make the payment, for how long you foresee being unable to make payments, details about your expenses and finances and previous loan payment details.
Freedom Mortgage, for example, is working with their borrowers to help them make sense of what they can do to avoid further financial hardship. This includes forbearance or refinancing, both of which might work for you depending on your extended financial situation.
Speak with a Housing Counselor
If you’re having a hard time making sense of how all of this will affect your mortgage loan long-term or how it might potentially affect your credit then it’s a good idea to speak with one of the U.S. Department of Housing and Urban Development approved housing counselors.
These are qualified professionals who will be able to give expert advice regarding your specific situation. As they are familiar with the housing industry and mortgage companies, they’ll offer suggestions based on your loan amount and financial situation. They’ll be able to give advice regarding renting, defaults, foreclosures, and credit issues, too.
Saving Cash for Mortgage Loans
If you’re like everybody else then you’re likely wondering how you can maximize your savings during the pandemic to avoid defaulting on your loans. Rest assured that you’re not alone and that we’re here to help see you through this crisis.
It’s why we offer such great savings deals with the Cheese debit card. By charging $0 in banking fees and getting you extra cash on your savings by cashback and saving bonuses, we fully believe that you’ll be able to maximize your savings through this difficult time.
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