As time goes on and we weather this Pandemic, what do homeowners do and tenants do when they are temporarily laid off due to the virus. Below is a great article that gives very good information for who people should call to work thru these unprecedented times. The article is written by Peter Warden it is worth the read.
Money Tight Because of COVID-19? These Relief Programs Can Help
There’s a growing list of government-sponsored and private relief programs to help U.S. households affected by COVID-19.
Below are financial aid programs currently available to U.S. homeowners, renters, and those who have recently become unemployed.
Note: COVID-19 is changing rapidly and new programs are coming out by the day. This list is current as of April 7, 2020.
In this article:
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Coronavirus mortgage relief
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Conventional loans (Fannie and Freddie)
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Government loans (FHA, VA, USDA)
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Private banks and lenders
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Federal and state relief programs
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Relief programs for renters
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$1,200 stimulus checks
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Unemployment and other aid programs
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Should you tap your emergency savings?
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Look out for scams
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Trustworthy resources for COVID-19 information
Coronavirus Mortgage Relief Programs
How to Get Help:
First, Contact Your Loan Servicer
Most help will be available only to those who ask for it. And the organization you need to ask — at least, at first — is your loan servicer.
You should work with your loan servicer to discover programs that may help you. Not all types of mortgages offer the same relief, and there may be state or local assistance you can tap. But don’t rely solely on the knowledge of the agent to whom you speak. Do some research of your own online. You’ll find some links below. And Google could be your friend.
“Loan Servicer” vs “Lender” — Who to Call
To get help postponing your mortgage payments or restructuring your loan, you need to speak to your “mortgage servicer.” This is the company that collects monthly payments and manages your account.
In many cases, this is not the same company as the lender or “loan originator” — the company that set up your loan.
Dig out your last mortgage statement. Whoever you send your payment to is the loan servicer. That’s the number you should call.
Mortgage Relief for Conventional Loans (Fannie Mae and Freddie Mac)
Fannie Mae and Freddie Mac were the first to unveil programs for those affected by the coronavirus.
Providing you agree with your lender on an assistance package, you could be in line for:
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Mortgage forbearance (reduced or no payments) for up to 12 months
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Penalties and late fees waived on issues covered by your forbearance agreement
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No reporting to credit bureaus on agreed issues
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Loan modifications that could allow you the same or lower monthly payments when things return to normal
Thanks to the recent CARES (Coronavirus Aid, Relief, and Economic Security) act, it’s even easier for homeowners to get this relief.
Under CARES, homeowners do not have to prove that they’re in financial distress in order to get mortgage relief. That means no extensive documentation.
Homeowners simply have to “claim” they’re going through financial hardship by sending in a hardship letter saying they’ve been affected by COVID-19.
To request mortgage relief, use this free tool to generate a “hardship letter”.
These programs could offer serious help. Just be aware that there are both pros and cons to forbearance.
Mortgage Relief for Government-backed Loans (FHA, VA, USDA)
Under the CARES act, government-backed loans are also eligible for forbearance.
Just like for conventional loans, those with government-backed loans simply have to ask their lender for forbearance, and send in a letter stating they’re going through financial hardship.
To request mortgage relief, use this free tool to generate a “hardship letter.”
In this way, government-backed loan holders can get forbearance for up to one year (180 days, with one extension of 180 days). This applies to:
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FHA loans
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VA loans
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USDA loans
Remember, you still have to ask for forbearance under the CARES act. It will NOT be automatically applied to any loans.
Relief Programs From Banks and Lenders
Many big mortgage lenders have already announced help for customers who are financially affected by COVID-19. Below are just a few that have put out official announcements.
Don’t panic if your lender isn’t among those shown. For reasons of space, we can only include a selection of the biggest companies. There’s a good chance your lender is already working on a relief program, too. Just ask.
- CITI
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U.S. Bank
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Wells Fargo
When you call or go online, remember the lending industry’s new unofficial slogan: “When people need help, just give them help.”
It’s never pleasant, sharing your woes with a complete stranger. But now’s the time to set such considerations aside. And certainly don’t wait until things get bad.
Related:
Relief Programs for Renters
State bans on evictions apply to renters as well as homeowners. So there are some protections in place, albeit limited ones.
List of states and cities that have banned evictions.
But, so far, there seem to be no programs designed to provide financial help to renters generally — at least beyond those listed below, which apply to virtually all Americans.
So, for now, renters will need to communicate with their lenders and try to work out solutions on an individual basis.
Call your landlord ASAP if the coronavirus means you’re sick, laid off, or otherwise unable to pay your rent.
Remember: If you forestall payments, they’ll likely be due as soon as coronavirus troubles pass. So make sure you and your landlord are clear on two things:
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How to handle missed or late rent payments during COVID-19
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How repayment for missed rent will be handled once COVID-19 ends
Get the agreement in writing if possible.
