This is a followup to a prior post I did suggesting that consumers strong consider, STOP Paying All Your Bills Now!
COVID19 Mortgage Relief
That post could sound a bit shocking at first, but if you read it carefully, and critically if you read the bulletins contained within that post, you’ll understand that the advice I’m giving is based on sound information coming directly from government sources. Essentially what’s happening is the federal government is recognizing very early on that these are unprecedented times. They’re ordering servicers to allow Debt Repudiation for extended periods of time. In doing so, it’s clear that federal policy makers want to ensure consumers have cash that can be used to fund necessities of basic living like food and medicine and recognizing that keeping funds flowing into the banking system is of a lower priority.
Now stop and think about that for just a second. Think of how dramatic the crisis we’re really living in when this is the explicit direction coming from the federal government.
So much is packed into these announcements….including the requirement that NO ADVERSE CREDIT REPORTING WILL OCCUR. The federal government is sending very clear and direct signals that this crisis we’re in is only going to get dramatically worse than we’re seeing right now. If they’re announcing these programs…this early in, and these programs are frankly as generous as they are, you can only imagine what kind of information behind the scenes is really driving all this. The servicers and credit reporting institutions are not federal agencies…these are private corporations, but they are being ORDERED to take these dramatic steps.
And while my initial post talked only about forbearance of loans for a short period of time, it’s important to recognize that the Federal Housing Finance Agency is establishing programs that contemplate mortgage pauses for a much longer period of time:
Mortgage Help for Homeowners Impacted by the Coronavirus
Fannie Mae, Freddie Mac (the Enterprises) and the Federal Home Loan Banks are taking steps to help people who have been impacted by the coronavirus. If your ability to pay your mortgage is impacted, and your loan is owned by Fannie Mae or Freddie Mac, you may be eligible to delay making your monthly mortgage payments for a temporary period, during which:
- You won’t incur late fees.
- You won’t have delinquencies reported to the credit bureaus.
- Foreclosure and other legal proceedings will be suspended
If you have trouble catching up at the end of this temporary relief period, additional assistance may be available. You can work with your servicer to resume making a mortgage payment. Or if you need additional assistance, you can work with your servicer on other foreclosure prevention options to keep your home.
Contact your mortgage servicer (the company where you send your monthly payments) as soon as possible to let them know about your current circumstances. The telephone number and mailing address of your mortgage servicer should be listed on your monthly mortgage statement.
AND NOW THE DISCLAIMER…YOU MUST CONTACT YOUR SERVICER DIRECTLY….THESE RELIEF PROGRAMS ARE NOT AUTOMATIC