How to Defer Mortgage/Rent Payments Due to Coronavirus? 5 Quick Facts to Know.
It’s common news now that most Americans will be receiving a one-time $1,200 through the Trump administration’s $2 trillion stimulus relief package to help American businesses and individuals get through the coronavirus pandemic.
However, that’s not nearly enough for most people to pay their rent or make mortgage payments. And, thankfully, most homeowners and renters won’t have to worry their mortgage loans or rent, at least for the time being.
According to the Federal Housing Finance Agency, Fannie Mae, Freddie Mac, and the Federal Home Loan Banks are providing relief. You can check out our resource page on how to get mortgage relief during the coronavirus crisis, but here are five other ways to defer your payments.
1. Understand the CARES Act
The CARES Act is the formal name given to the $2 trillion stimulus package. And, within that, numerous groups are eligible for aid, from individuals and small businesses to other industries such as healthcare. As part of the CARES Act, homeowners with federally-backed loans are protected in two different ways. First, it prevents any sort of foreclosure proceedings for at least the next 60 days (beginning March 18th, 2020). And, it also allows homeowners to defer their mortgage payments for 180 days.
2. Extend Your Forbearance Period for a Year
So, you know that you’re eligible for forbearance and that you won’t have to make any massive payments when it comes to real estate or rent in the next 180 days. However, what people don’t seem to notice is that the CARES Act also states that renters and homeowners are able to ask for another extension after that period is over. Contact your mortgage lender ever 90 days to make an extension, for up to a year. Your credit will not be affected and you can resume payments after the year-long period is up.
3. Check the HUD Website for Resources
As the stimulus package has just been passed, people and organizations are still trying to figure out how to allocate and best use the money that the government is handing out to various different sectors. The US Department of Housing and Urban Development is asking that $3 billion of that funding be used to support their various efforts. Among them, they note, is the goal to use a portion of that money to provide housing assistance payments for rent, mortgage, utilities for up to 24 months. This is still ongoing, so continue to check their website for resources.
4. Communicate With Your Landlord
When it comes to renting an apartment and the rules surrounding deferred rent payments due to coronavirus, it’s best to check with your local authorities at the state level. States and their corresponding apartment and housing associations are trying to pass bills that would give renters more time to defer payments and landlords more financial assistance in paying off their own mortgages. And, they’re also telling people to communicate with their landlords. Let them know ahead of time that you can’t make your payments and try to come to an agreement.
5. Get Financial Relief from the Government
If your landlord or mortgage lender isn’t being flexible with you about making payments then you might try to search for more financial assistance from the government. Benefits.gov has provided a high-quality round-up of resources and benefits for those who need them. This national government website is designed to ensure every American citizen can access accurate information regarding the acquisition or status of economic aid. Use their handy Benefit Finder tool to find additional benefits you may be eligible for.
Optimize Your Savings & Spending
If you’re experiencing financial hardship during this unprecedented time then it’s important to get your financial health under control as fast as possible. Reducing your spending, altering your budget and optimizing your savings are all steps you can take to protect your financial health right now.
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