spin_dry Posted March 20, 2020 Share Posted March 20, 2020 Homeowners who have lost income or their jobs because of the coronavirus outbreak are getting some relief. Depending on their situation, they should be eligible to have their mortgage payments reduced or suspended for up to 12 months. Federal regulators, through the mortgage giants Fannie Mae and Freddie Mac, are ordering lenders to offer homeowners flexibility. The move covers about half of all home loans in the U.S. — those guaranteed by Fannie and Freddie. But regulators expect that the entire mortgage industry will quickly adopt a similar policy. Under the plan, people who have suffered a loss of income can qualify to make reduced payments or be granted a complete pause in payments. THE CORONAVIRUS CRISIS New York Will Waive Mortgage Payments For 90 Days Based On Financial Hardship "That forbearance is up to 12 months, depending on their particular situation," says Mark Calabria, director of the Federal Housing Finance Agency, which oversees Fannie and Freddie. Homeowners can't just stop paying their mortgage. "They need to contact their servicer — that is the lender that they send the check to every month," he says. "That lender will work with them to be able to work out a payment plan. Obviously, we hope to get them back on their feet as soon as possible." Calabria says people in financial distress because of the coronavirus can just verbally testify to that over the phone with their lender. Documenting the hardship can come later. "You're not going to have to send 20 pieces of paper at the front of this," he says. "We want to do it quickly." Quote Link to comment Share on other sites More sharing options...
AKIQPilot Posted March 20, 2020 Share Posted March 20, 2020 This is great news. 1 Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member steve from amherst Posted March 20, 2020 Platinum Contributing Member Share Posted March 20, 2020 7 hours ago, AKIQPilot said: This is great news. It is . No need to crash a housing market and force folks from their homes over a virus. 1 Quote Link to comment Share on other sites More sharing options...
racer254 Posted March 20, 2020 Share Posted March 20, 2020 What if you can't pay your property taxes on the property involved with the mortgage? Will that be the same? Quote Link to comment Share on other sites More sharing options...
Anler Posted March 20, 2020 Share Posted March 20, 2020 It's a sensible move. It keeps people in their homes and doesn't tank the real estate market. Also keeps predatory lenders in check. Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member steve from amherst Posted March 20, 2020 Platinum Contributing Member Share Posted March 20, 2020 3 minutes ago, racer254 said: What if you can't pay your property taxes on the property involved with the mortgage? Will that be the same? They can recommend it, but that would be up to the towns. Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member Highmark Posted March 20, 2020 Platinum Contributing Member Share Posted March 20, 2020 3 minutes ago, racer254 said: What if you can't pay your property taxes on the property involved with the mortgage? Will that be the same? This is gonna have to be looked at as well. For example if someone who owns a apartment complex and is giving some relief/delay to renters they should be allowed some delay on property taxes as well. Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member steve from amherst Posted March 20, 2020 Platinum Contributing Member Share Posted March 20, 2020 2 minutes ago, Highmark said: This is gonna have to be looked at as well. For example if someone who owns a apartment complex and is giving some relief/delay to renters they should be allowed some delay on property taxes as well. true, but where does it stop? You guys in other arts of the country have strong counties I do believe and more room to spread the pain. Those of us in MA and NH pay our taxes to the town , then the town gives a tiny amount to the county. Many are already on shoe string budgets. Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member Highmark Posted March 20, 2020 Platinum Contributing Member Share Posted March 20, 2020 2 minutes ago, steve from amherst said: true, but where does it stop? You guys in other arts of the country have strong counties I do believe and more room to spread the pain. Those of us in MA and NH pay our taxes to the town , then the town gives a tiny amount to the county. Many are already on shoe string budgets. No different than the federal govt spending money they don't have. Everything needs to be considered and looked at. I get it that the counties/cities won't have money coming in but what is better figuring a way to have some delay's or properties go on the market that are delinquent and have rich buying them up. No easy solution but options need to be considered. All levels of govt are facing this. A hugh % of companies will be too. Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member steve from amherst Posted March 20, 2020 Platinum Contributing Member Share Posted March 20, 2020 Just now, Highmark said: No different than the federal govt spending money they don't have. Everything needs to be considered and looked at. I get it that the counties/cities won't have money coming in but what is better figuring a way to have some delay's or properties go on the market that are delinquent and have rich buying them up. No easy solution but options need to be considered. All levels of govt are facing this. A hugh % of companies will be too. Actually there is a huge difference. Local budgets have to balance. Federal dosnt. Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member Highmark Posted March 20, 2020 Platinum Contributing Member Share Posted March 20, 2020 (edited) 1 minute ago, steve from amherst said: Actually there is a huge difference. Local budgets have to balance. Federal dosnt. That's where the federal govt can come in in the short term and have it paid back quickly when this all settles out. They also need to look at cutting spending down to the most needed. Our fed and state govt's should be doing that as well. Edited March 20, 2020 by Highmark Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.