Click HERE for information about the recently passed major economic stimulus bill.
Many lenders right now are offering up to 90 days forbearance (mandated on federally-backed loans and private lenders are mostly coming up with some version of this as well)--but, yes- for many borrowers applying for a forbearance, the full amount of missed payments is due at the end of the 90 day period.
This is perhaps “relief", but not “forgiveness.”
For example, If your mortgage is $2,000---and you are granted forbearance until July---you would skip payments between now and July, but then owe $8,000 on July 1st. Even if they don't report negative feedback to the credit bureaus during the forbearance, they are not obligated to report positive feedback, which will most likely affect people's credit negatively in this way.
It’s really important to call your lender or mortgage servicer to get the details about what they are offering and ask as many questions as you can! Each lender is different, so people need to go directly to their mortgage co. to get the details. Even if forbearance is a necessity for some (and I am sure it will be some people's only option!), they should make all attempts to stay current on their property taxes and homeowner's insurance during this time, so that they don't also become past due! Ask about deferment and if that is also an option—- that means that the amount missed would be “tacked on” to the end of your mortgage.
Click HERE to lookup contact info for your mortgage co. if you need to talk to them about your options.
If you are a renter: Click HERE for great tips on how to ask for rent relief/assistance from your landlord/property manager. They have a hotline to help you and some sample letters.
For landlords, there are also options, but they need to ask for the forbearance in 30 day increments---up to a total of 90 days. They will also need to pay all deferred payments at the end of the period in most cases.
If you have a mortgage:
Single-family borrowers with federally-backed loans who can’t make payments because of COVID-19 are eligible for a delay in mortgage payments with no interest accrued, no reporting to the credit bureaus and no foreclosure actions for up to two 180 day periods. Contact your loan servicer to make the request. . BUT read the fine print and make sure you know when those deferred payments will be due!
Multifamily-borrowers (landlords) who can’t make mortgage payments because of COVID-19 are eligible for up to three, 30- day delays in mortgage payments. Contact your mortgage servicer to make the request.
There is a 60-day suspension on all foreclosures on federally-backed mortgages..
Many private banks and mortgage providers are offering similar relief. Check with your lender
If you are a renter or landlord:
Eviction Ban (Section 4024) The CARES Act (federal stimulus legislation passed last Friday) bans landlords from initiating eviction proceedings for nonpayment of rent for 120 days in properties where landlords receive federal funds or have a federally-backed mortgage. The law also bans these same landlords from issuing notices to vacate for 120 days.
Governor Brown’s Executive Order 20-11 from March 22 prevents law enforcement officials from delivering any notice or enforcing any eviction for nonpayment of rent for 90 days.
Multnomah County has issued its own eviction ban. Other jurisdictions may have as well. Several local jurisdictions (including up and down the coast) have issued bans on short-term rentals. Check with your local jurisdictions to see what bans are in place.
Call me with any questions— I will point you in the right direction if I can’t answer your question directly and I will keep you up to date on more mortgage “relief” options as I hear about them!
In health,
Liza