Payment Relief For Federally Backed Mortgages Was Just Extended
If you received payment relief for your mortgage over the past few months, we have good news. That relief will be extended if you still need it, along with a few extra conditions. The Federal Housing Finance Agency recently announced that federally backed mortgages will continue to allow homeowners to seek relief from payments. It also prevents foreclosures and evictions until “at least” August 21, 2020.
The original mortgage relief — enacted as part of the CARES Act to combat the financial struggles of the pandemic — was set to expire at the end of June. The relief will now extend for two extra months. It applies to federally backed mortgages from Fannie Mae and Freddie Mac, the Federal Housing Administration (FHA), Department of Veterans Affairs (VA), the Department of Housing Development (HUD), or the U.S. Department of Agriculture (USDA).
Despite many states beginning stay-at-home measures in mid-March, the pandemic continues to affect Americans nationwide. Many citizens are still without work. If they are able to return to work, it may be with reduced hours as things slowly open back up. If you’re struggling to pay your mortgage, you can apply for a forbearance. It will grant you an 180-day extension. Later, you can request another 180-day extension if you still need it.
What About Non-Federally Backed Mortgages?
If you don’t have one of the above mentioned mortgages, things get trickier. Every major bank and financial institution has offered some sort of mortgage relief. However, they aren’t all the same. The best way to find out what programs exist to help you stay afloat is still to call you mortgage provider. They will explain all of your available options to you. The good news is that there’s almost zero chance of eviction or foreclosure due to the current circumstances.
What If You Rent?
A growing number of Americans rent their homes instead of owning them outright. While skyrocketing housing prices in populated areas is whole different economic concern, renters can also breathe a sigh of relief. The mortgage relief extension means that landlords won’t be scrambling to pay their real estate obligations. In turn, that should give any renters who are suffering financially a bit of relief from rent payments. Again, you’ll need to contact your individual landlord (or property management company) to find out what your options are. But if they aren’t being squeezed for mortgage payments, they don’t need to squeeze you for full rent payments.