Whether you rent or own your home, chances are you are feeling the financial burdens associated with COVID-19 and government-mandated closures, resulting in job and wage losses.
Mortgage Relief for Homeowners
With the passage of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, lenders were directed to provide possible relief options to homeowners.
However, it is important to know that the type of mortgage you have will determine the relief options available to you.
The mortgages listed below are eligible for CARES Act relief:
- Fannie Mae and Freddie Mac: conventional loans
- Federal Housing Administration: FHA loans
- Department of Veterans Affairs: VA loans
- Department of Agriculture: USDA loans
In addition to the relief available for these loans under the CARES Act, these lenders also have created their own assistance programs, too.
To find out if your mortgage is owned by Fannie Mae or Freddie Mac, you can utilize each company’s loan look-up tools on their websites.
To find out if you have an FHA, VA or USDA loan, review your closing documents and look for the Closing Disclosure. You will see on the upper right-hand page of the document a section called Loan Information and checkboxes which indicate if the loan is FHA, VA or other.
If you are seeking loan modifications during COVID-19, it helps to have all of your pertinent information prepared before calling. Make sure you have the following documents and information before calling:
- An estimate of your current income
- An estimate of your current monthly expenses
- Your most recent mortgage statement
- Documentation of what caused your situation to change
If you have questions about your mortgage and relief options, do not hesitate to reach out to us. We can guide you through the process.
Relief for Renters
Under the CARES ACT, there is a 120-day eviction protection plan in place. Renters cannot be served an eviction notice until July 25, 2020 and you must be given 30 days to leave the property which would equate to approximately Aug. 24, 2020.
While renters cannot be evicted during the temporary period, you still must pay rent. The Act simply makes it possible for you to not be evicted or charged late fees or penalties during that time frame.
Housing covered by the act includes rentals:
- Covered under section 41411 of the Violence Against Women Act of 1994
- Covered by the rural housing voucher program under section 542 of the Housing Act of 1949
- That have a federally backed mortgage or multifamily mortgage loan
HUD has also created some aid for rental assistance during this time which is available here.
If you are not renting from a home covered by any of the above loans, be sure to speak with your landlord as soon as possible to see what agreement you can come to during this time.
If you cannot come to an agreement and your landlord is trying to evict you, know that you have legal rights under the CARES Act.
If you have questions regarding relief options as a renter or homeowner, do not wait to get help.
Right now your biggest concern is keeping a roof over your families’ head while remaining safe during the COVID-19 outbreak. We are here to help you navigate the real estate changes as they come. We are working with attorneys all over the country. Contact us today.