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April 8, 2020Coronavirus: Mortgage Loan Deferment & Assistance
During the Coronavirus pandemic many Americans are looking to a mortgage loan deferment and other assistance to keep their homes. This global pandemic is affecting people in every country worldwide. With so many people forced to no longer return to work they don’t know where their next paycheck will come from. Others incomes are drastically dropping because of this widespread illness. A majority of people will depend on a mortgage deferment to avoid loosing their home.
How are Mortgage Lenders Stepping-Up to Help Borrowers Affected by Coronavirus?
The government is stating that it’s imperative for mortgage lenders to work with those affected by the Coronavirus. People all over the country will soon be experiencing hardships as a result of it. As of now 3/19/20 if borrowers are unable to make their monthly mortgage payments, lenders are to offer a forbearance plan, or some type of assistance. During these unprecedented times, it’s imperative for banks to evaluate the needs of their customers. Then after to offer the assistance needed. The FHA announced that mortgage payment assistance will be available to Americans that are affected by COVID-19.
Why are Workers Being Affected?
Every day the government tightens restrictions on the freedom of the American people in hopes to get a handle on this pandemic. Right now the most important thing is to get it under control. The Coronavirus is highly contagious and spreading fast. The government is looking for any way to slow the crisis down in hopes to save its population. Thus implementing social distancing by way of personal space boundaries of 6 feet to minimize exposure. Although it’s critical we follow procedures, it is reducing the ability for people to work because they are to close in contact of each other.
The result of social distancing in the workforce means many workers, such as hair dressers, servers, non-essential store workers such as Macys, Bloomingdales etc, are all being forced to stay home. The government recommended gatherings of no more than ten people. This than affects events, concerts, live show tapings, national sports competitions, movie theaters, theme parks, etc. While the government continues to impose necessary restrictions on its people, more and more lives are affected financially. The result of not being able to work is no paycheck.
What Industries are Being Affected?
ALL Industries are being affected. Business are closing their doors at an unprecedented rate. This in turn leaves employees unable to work whether they are being furloughed unpaid, laid off, or asked to go home until businesses are able to reopen. More than half of all American jobs are at risk.
The hospitality and tourism industries are already being hit hard. Restaurants are restricting dining in and focusing on curbside pickup, drive through, and delivery in hopes to make a little money. This is until they receive a government mandate to shut down completely. The government has already done so in certain cities across the nation. Empty hotel rooms leave hotels to close up indefinitely. Many people are asked to no longer come in to work as there is no need for them there. International travel is coming to a halt and all national travel is currently asked to be postponed unless it is absolutely necessary.
Cities with high tourism will feel the hit community wide as that is what their economy relies on. Take our own backyard for instance, Walt Disney World, Universal Studios Orlando, SeaWorld, etc, are all shut down indefinitely which adds up to hundreds of thousands of workers nationwide out of work. Not only does it affect all of those theme park workers, but also supporting businesses such as: travel agents, tour guides, photographers, and more.
Leisure services such as the beauty industry, hair dressers, nail techs, etc are also asked to stay home as well as social distancing is imperative during this time. No matter what industry you are in, you are going to feel the financial affects of the Coronavirus.
How to Seek Help with Mortgage Payments Due to Coronavirus?
If you think you may be in jeopardy of losing your income or know that you already are in trouble, DO NOT WAIT! Call now to see what your lender is offering and if they have any info on what options would be the best for you. Many mortgage companies sell your loan to secondary companies meaning that the best way to get answers is to contact the company in which your mortgage bill comes from directly. As hardship begins to sink in it’s important to know your options.
Do ALL Mortgages Qualify for Deferment Due to Coronavirus?
According to the FHA, “As with any other event that negatively impacts a borrower’s ability to pay their monthly mortgage payment, FHA’s suite of loss mitigation options provides solutions that mortgagees should offer to distressed borrowers, including those that could be impacted by the Coronavirus, to help prevent them from going into foreclosure.”
Call your mortgage company now to see if they are offering deferment plans. The sooner you call, the better your account standing will be as opposed to skipping a payment or two and then calling when you are already behind. The longer you wait may prove to be even more challenging as more workers are being asked to stay home leaving call centers with limited personnel to talk to. Most mortgages are offering some sort of assistance, though not all may offer the same options. Some companies may be offering up better deferment plans than others as currently there is no one set policy mandated for mortgage lenders, other than, they need to offer assistance of some kind.
What are Mortage Lenders Offering for Homeowners?
Mortgage providers are being advised to offer forbearance options. This is a great option for those that are likely to fall behind on mortgage payments. Doing this will either reduce or suspend payments temporarily for up to six months until you can make your regular payments. Do be aware that with forbearance, interest will still accumulate as well as a repayment plan will be setup to pay off the reduced or missed payments and catch up once your finances are in a better state. Nationwide, the government is imposing suspensions of evictions and foreclosures to lessen the burden of its people who are unable to pay their bills currently til the end of the month. Lenders are also looking at suspending payments temporarily to help their people with the crisis.
Erica Diaz Team – Mortgage Deferment & Assistance Due to Coronavirus
Here in America we are quickly feeling the financial affects of the Coronavirus. With social distancing in place it is leaving many Americans out of work, resulting in no paycheck. During this time mortgage lenders are being told they must provide some type of assistance to ensure you do not loose your home. We encourage you to call your lender now to see what they are offering.
If you have any questions about the housing market here in Winter Garden, FL and surrounding areas during this time we would love to chat.
