COVID-19 Has had a devastating impact on our economy already. This impact has brought on a lot of stress for American families paying Mortgages or Rent. Here is some good information to hopefully help ease some stress from your family.
Last Wednesday President Trump announced evictions and foreclosures on houses backed by government-sponsored mortgage facilitators Freddie Mac and Fannie Mae, or by the Federal Housing Administration (FHA), will be suspended at least through the end of April. Freddie, Fannie, and the FHA back the vast majority of single-family houses. So if you’re in financial trouble, you will be protected, at least through April.
If you are worried about your Mortgage do these three things.
1. Contact your Mortgage Servicer Immediately
- When you call them, tell them your situation and ask what options are available. Mention that Fannie and Freddie say you might qualify for mortgage payment reduction or deferral.
2. Diligently document your financial hardship
- As things progress, the federal government might change its policy or offer some form of relief for those who qualify. Freddie and Fannie and thus your servicer could make changes as well. It’s a very fluid situation. When this happens, you’re going to want to have all the documentation showing that you are in need. If you’re taking a pay cut, start collecting pay stubs or communication from your employer that shows this. If your stock portfolio tanked, get statements that show it. If you’re laid off, save those related documents.
3.Document everything that transpires between you and the servicer.
- Mortgage servicers are about to be swamped with calls from people dealing with the coronavirus fallout. While servicers are likely recording your call with them, it’s important to document all your communication with them for your own records, too. If you can record your calls with them using a voice recorder or smartphone, do it. If they send you emails related to your mortgage, put them in a specific folder in your email account. If they send you paperwork in the mail, put it in a file folder and have it handy. This way, if the servicer loses documentation of what it promised you in the deluge that is about to unfold, you’ll be able to play the call back to them or send them documentation of any kind.
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Mortgages aren’t the only payments that have Americans worried millions have rent to pay and will be unable to do so with reduced or even no income.
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“Through no fault of their own, many Oregonians have lost jobs, closed businesses, and found themselves without a source of income to pay rent and other housing costs during this coronavirus outbreak,” said Governor Brown. “The last thing we need to do during this crisis is turn out more Oregonians struggling to make ends meet from their homes and onto the streets.”
-Governor Kate Brown
Under the Governor’s emergency powers, the order places a temporary hold throughout Oregon on law enforcement actions relating to residential evictions for not paying rent. Recognizing that landlords and property owners face their own costs if tenants are not able to pay rent, the Governor and her Coronavirus Economic Advisory Council are engaging lenders to find potential solutions and are exploring various state and federal policy options that might be available to provide assistance to borrowers or other options for relief. Oregon Housing and Community Services and the Department of Consumer and Business Services are also pursuing relief options at the direction of the Governor.
The Benson Broker Group is here for you. If you have any questions or concerns please feel free to reach out to us. We are still able to assist you in buying, selling or investing throughout this outbreak. We are taking all necessary precautions to keep ourselves and our clients safe and we look forward to getting to assist you in making your real estate dreams come true!