Things are a bit uncertain in real estate land. If you have a mortgage, or are a tenant or landlord, the following information should be helpful. I’d love to hear from you and chat about what’s happening in your life.
Together we will find a way. This too shall pass.
Mortgage Assistance from the Federal Housing Finance Agency
Mark Calabria, Director of the FHFA just expanded, in an interview on NPR, the Mortgage Assistance Program that was announced just a few days ago.
This program affects all mortgages guaranteed by Fannie Mae, Freddie Mac and the FHA, the majority of all conforming loans. Calabria stated that, because the feds were initiating this program, major banks and lenders will more than likely follow suit with non-conforming loans as well. The programs are below.
- Homeowners and Landlords Directly Affected
Eligibility Criteria – Loss or decline of income as a result of the pandemic. This can affect any party in a joint mortgage. Moreover, landlords can also apply if their rental income is affected.
Terms – Up to one year of deferral of mortgage payments. This is a forbearance, not a cancellation of debt but no interest or other fees would be charged on the deferred amount. Repayment can be added at the term of the loan or the borrower can do make-up payments during the term. This seems to be discretionary by the borrower.
I. Homeowners and Landlords Directly Affected
Eligibility Criteria – Loss or decline of income as a result of the pandemic. This can affect any party in a joint mortgage. Moreover, landlords can also apply if their rental income is affected.
Terms – Up to one year of deferral of mortgage payments. This is a forbearance, not a cancellation of debt but no interest or other fees would be charged on the deferred amount. Repayment can be added at the term of the loan or the borrower can do make-up payments during the term. This seems to be discretionary by the borrower.
Documentation – For now, servicers will accept the statement of the borrower as to the percentage of income decline and work out a reduction ratio to payment, 50-60-100% whatever is achievable.
Contact – Contact the loan servicer
II. Homeowners Facing Foreclosure Now
For those borrowers already facing foreclosure, there is a 60-day postponement of any action. Calabria did firmly acknowledge that, if the crisis continues beyond 60 days, this program will be extended. Again the presumed contact would be the servicer and/or the trustee.
III. Renters
Because landlords can benefit under the first program above, renters should have significant leverage in negotiating rent reductions. Calabria insisted that landlords would get forbearance as long as it is passed on to tenants.
Check the website below for continuing information. Right now information is sparse, but the interview was more expansive.
