Cares Act - Covid-19 Mortgage Payments & Rent
May 18, 2020
During the pandemic, it has been estimated, per the Department of Labor, that 3 million households have filed for unemployment. You should not have to worry about losing your home during this COVID-19 crisis. The CARES Act anticipated this slowdown in the workforce and included mortgage relief provisions.
If you are a homeowner with a federally backed mortgage, you are afforded the option to stop making your mortgage payments for up to 12 months due to the corona virus. Federally backed mortgages are those with Fannie Mae, Freddie Mac and insured by the Federal Housing Agency, VA loans, or US Department of Agriculture loans.
You have to request your payments to be suspended directly from the company you send your mortgage payment to. Confirm with them that your hardship is in fact due to the effects of the pandemic. Initial mortgage relief is awarded for the first 6 months, and then you can submit a second request and extend your relief out another 6 months. During this time your lender is prevented from adding extra fees, or a penalty or more interest during this time.
Now let's talk about foreclosure and evictions. Once again, the CARES Act provides for a 60-day freeze, beginning on March 18, 2020, on foreclosure and evictions, if there is a federally backed mortgage.
For renters who live in federally subsidized housing or the property owner has a federally backed mortgage, the CARES Act includes a freeze on this group of persons from being evicted as well.
If you have a hard time catching up on your payments, there is additional assistance as well and you are not required to repay the delinquent mortgage payments all at once. There are repayment plans, payment deferrals, and a loan modification if you are anticipated to be at a continual lower income level.
Please reach out to the company you make your mortgage payments to, landlords or leasing personnel for assistance, and work with them regarding the status of your payments and forego foreclosure or eviction.
For further help for homeowners please visit here.
This blog is intended for information purposes only and does not establish legal representation or financial guidance.