Paying Mortgage on time can be a task, even in ‘normal’ circumstances. However, COVID-19 pandemic has left us all uncertain of the future. Even as you’re reading this, thousands of people are losing their jobs. Some of them even lost their loved ones. Luckily, the government has made certain mortgage relief options for people harmed by this disaster.
If you are among people harmed by COVID-19 pandemic, you are probably worrying about paying your monthly bills and making mortgage payments. Luckily, The United States Department of Housing and Urban Development has committed itself to helping those hit with the consequences of this pandemic by providing some mortgage relief options. If you want to know more about them, and if you are interested to see whether or not you may qualify, keep on reading. We at Sparks Property Investors LLC have found several mortgage relief options for homeowners in Wisconsin.
Help for Homeowners
If your finances are impacted and you have a loan that is owned by Freddie Mac and Fannie Mae, you might be eligible for some mortgage relief options. You may be able to delay your monthly payments for a certain period of time. If you gain this relief, this means that you won’t incur late fees and that foreclosure will be temporarily suspended. You have to contact your lender to see if any of this applies to you.
If you have trouble with your payments even after the expected time frame, you may ask for some additional help. In most cases, you will not be required to pay all your missed payments at once. Instead, you may ask to pay a higher monthly mortgage for a certain period of time, which will allow you to repay your debt over a period of time. Another option is to move your missed payments at the end of the loan or to make a different repayment plan. This may include the ability to repay the debt during the sale of your house.
What if you have lost your job, or if your monthly salary has decreased due to the coronavirus pandemic? There are mortgage relief options for you, as well. You may be eligible to modify your mortgage, so that you can pay smaller mortgages for a longer period, or you may make some different agreement with the lender.
Help for Renters
If you are renting a house that is financed by two of the biggest lenders, Freddie Mac and Fannie Mae, there are certain relief options for you as well, as you are covered by a temporary eviction moratorium. However, it is expected of you to pay your rent in time – if possible. If you have any financial struggles, you should ask your renter to try to find a potential solution. You may also contact the HUD approved Disaster Response Networks to see if you are eligible for their personalized recovery assessment and action plan.
Know Your Rights
The new Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed on 27th March 2020. It has a lot of mortgage relief options for both homeowners and renters and you should carefully study it to know your rights. For example, your lender or other loan servicer may not start foreclosure for 60 days after 18th March 2020, as this is prohibited by the CARES act. This also means that no foreclosure process or forced sale can be done at this period of time. You also have a right to request a forbearance for up to 180 days. This can be extended for another 180 days, if needed, and there cannot be any additional fees, penalties or additional interest added to your account – if you have a federally backed mortgage.
Watch out for Scammers
Sadly, it has become a common thing to see the amount of scams and frauds rising in the time of crisis. If you have received mortgage relief options from an unreliable source, don’t fall for it, as it is most likely scam. The same also goes if you are contacted by what you think is your official lender, but something sounds suspicious, double check everything. Be sure that the email address is the one from their official website. Don’t leave your payment and card details anywhere that isn’t 100% safe! If you ever suspect that you are being scammed, contact your official lender to see what your options are.
If you want to see more information on how to protect yourself, check out the Coronavirus-Related Fraud Prevention Tips and Resources for Borrowers, Renters, and the Mortgage Industry webpage.
Sell Your House
If you are not eligible for these mortgage relief options and you fear that your mortgage payments are becoming too high and that the foreclosure is a realistic outcome, you can always contact some direct buyer, such as Sparks Property Investors LLC, that are still buying houses even during the Coronavirus pandemic – with necessary precautions. Selling your house to get rid of debt shouldn’t be your first option, but when all else fails it is better to downsize. And don’t worry – we will close the sale when you decide to, so if you fear that you won’t have a place to stay, you have the time to make all the necessary preparations. Another good thing? We will pay in cash, so there is no need to wait for bank approval.