There is information overload as we all hunker down and observe the Washington State Stay Home, Stay Healthy Order (SHSHO) and the Federal Social Distancing Guidelines. We thought it might be helpful to highlight some of the information related to the CARES Act and Staying in your Home
As in, you want to stay in the home you have but are worried about the financial consequences of this Pandemic. Here are some of the relevant components of the CARES Act signed by the President on 3/27/2020.
Mortgage Forbearance – an agreement with your lender to hold back from foreclosure activities when you can’t meet your repayment obligations. If you can pay your mortgage, you should continue to do so. If you can’t make your payment due to a decline in income resulting from the impact of Covid-19, you should call your lender/mortgage servicer.
Borrowers of government-backed mortgages can request up to 360-day payment forbearance.
Government-Backed Mortgages – this includes loan products from the Veteran’s Administration, USDA, Freddie Mac, Fannie Mae and Conventional Loans that are backed by Freddie Mac or Fannie Mae. Don’t know if your loan qualifies?
Non-Government Backed Mortgages - call your lender/mortgage servicer if this is a temporary problem related to Covid19. Many companies are providing assistance and putting plans in place. Many are willing to provide zero interest & late fee deferral options and have paused in process foreclosure sales, evictions and repossessions. No one wants a repeat of the subprime 2008 mortgage crisis!
Assistance for Renters - There is a 120-day suspension on evictions for renters unable to pay in Federally-assisted properties (single family & multifamily properties) with loans owned or securitized by Fannie Mae or Freddie Mac.