Many homeowners are worried about their mortgages during the COVID-19 pandemic. And while it is true that government-backed mortgage bailout programs abound, some borrowers are unable to take advantage of those programs because they don’t have FHA, VA, USDA loans or mortgages backed by Fannie Mae and Freddie Mac.
What do you need to know about mortgage bailout programs? Do you know how to save your mortgage during the crisis? Some feel the coronavirus situation is beginning to wind down, others see that without aggressive testing there is just no way to be sure when that might happen nationally.
And that means a continued threat to the incomes and livelihoods of many.
Not because the government is unreasonably clamping down, but because there are too many questions about the virus to safely and definitively chart a plan to reopen businesses in a major way.
Some businesses will stay closed, even in areas like Georgia where “reopening” is a major buzzword. Other businesses will reopen but at 50% of their previous capacity pre-social distancing.
All these measures are necessary to ensure safety for the most at-risk. Older people with healthy immune systems may be just as vulnerable depending on circumstances as younger people with compromised immunity.
And with the revelation that the Department of Defense is at the time of this writing may be refusing to accept ANY potential recruit who has previously been infected with COVID-19? That should be a VERY important warning to those who aren’t sure how badly COVID-19 can hurt the human body.
What You Need To Know
What does all this have to do with saving your mortgage? Three things:
- COVID-19 is not going away anytime soon. There will likely be resurgences in places where proper social distancing and other measures are not followed, based on the most current modeling, statistical data, and trained medical doctor observations.
- Unemployment will hit double digits, and the economy has been badly damaged by coronavirus issues.
- If you are not experiencing trouble paying your bills now, it’s not safe to assume you will remain in that position going forward. There are too many question marks at home and overseas with regard to economic problems. Remember, even if the United States economy improves, that does NOT mean the global economy will follow suit. And U.S. economic growth does not happen in a vacuum.
You can protect your mortgage and credit rating in the days ahead by continuing to pay your mortgage on time, but you can also request loan forbearance depending on the type of mortgage you have.
Loan forbearance is NOT automatic, you will need to contact your lender and make arrangements to have your mortgage payments delayed by six months to one full year. But that is NOT your only option.
You can also call the loan servicer to request reduced payments due to financial hardship, or interest-only payments. If you need to do this, call BEFORE you miss even ONE payment for best results. Otherwise, the lender is more restricted in how they can help you.
Joe Wallace is a writer and editor from Illinois. He was an editor and producer for Air Force Television News for 13 years, and has served as Managing Editor for publications including Gearwire.com, and Associate Editor for FHANewsBlog.com. He is also an experienced book and script editor specializing in non-fiction and documentary filmmaking.