Four of the five largest banks in the U.S. have agreed to let California residents skip mortgage payments for 90 days if they have lost their jobs or are struggling financially due to the coronavirus pandemic.
The recently passed Coronavirus Aid, Relief, and Economic Security act, or CARES Act, allows impacted homeowners with federally backed loans to delay paying their mortgage and get a break on accumulating interest for up to a year.
With millions of people experiencing financial hardship because of the outbreak, the requests for mortgage forbearance skyrocketed by 1,270% between the weeks of March 2 and March 16, and by another 1,896% between the weeks of March 16 and the week of March 30, according to the Mortgage Bankers Association.
The information is often reported in a very misleading way or left open for misinterpretation. We’re giving you the facts you need to keep you away from a mistake that could cause financial hardship or destroy your good credit.
The media is making it sound like homeowners should skip their next 3-12-month mortgage payments – that you will not be reported late or pay any penalties. That is only half true. It is NOT a forgiveness program; you will have to pay the payments you have skipped in time – when you will have to pay them depends on the loan servicers policy.
Everyone’s situation is different, so there is no ‘general’ answer to everyone. If you have no financial hardship, now is an excellent time to look at money-saving refinancing options – contact us to find out if this is an option for you.
If you require more info, please contact us directly. There are a number of 3rd parties offers out there that sound great – but will not guide you properly through the process. You have enough going on right now, and you don’t need bad financial advice too. We can provide you with the answers and expertise that will help you.
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