Thousands of people have been laid off in Nevada and across the country this week. No one knows if there will be more or for how long. Many are going to be stressed about how they are going to make their mortgage payments and keep their family in their home.
The first thing you need to understand is the bank does not want to take your home. They make their money long term from your payments, they incur costs by foreclosing on your house.
Government agencies are working with the lenders and instructing them to work with you, their customers to keep you in your home. You have to do your part though.
Look at your finances now, don’t wait until your payment is due or past due. Call your lender’s customer service department and explain to them that you have been laid off and expect to return to your job when this national emergency is over. They want to work with you. They have forbearance departments set up and are there to try to help you. Be honest with them about your financial situation, what you owe in bills, your savings, and your income if you have any at this time. They have a lot of latitude on what they can do during this time to try to keep everyone in their home.
Time is of the essence, they are going to be busy serving thousands of people across the country. Stay patient, provide them with the information they need in a timely manner.
If you’re a renter – the same advice applies. Be proactive – let your landlord know that you’ve been laid off or have reduced income. Hopefully, they’ll work with you to catch up when normal resumes.
Once again, do not wait until you are late with your payment.
AND – Do not panic thinking that you have to sell your home. Remember – food, housing, critical medicine, and transportation first! Even the credit card companies will work with you.
If you would like to talk to me about anything related to Real Estate – DO NOT HESITATE to reach out by phone or email.
Below are two articles from housing-wire that reports what is happening in the industry. They explain much of the process to help keep people in their homes.
Federal Housing Finance Agency Director Mark Calabria is reminding servicers and borrowers that a hardship forbearance is an option for those who are unable to make their monthly mortgage payments due to coronavirus.
“To meet the needs of borrowers who may be impacted by the coronavirus, last week Fannie Mae and Freddie Mac (“the Enterprises”) reminded mortgage servicers that a hardship forbearance is an option for borrowers who are unable to make their monthly mortgage payment,” Calabria said in a statement.
“For borrowers that may be experiencing hardship, I encourage you to reach out to your servicer. The Enterprises and the Federal Home Loan Banks continue to provide support to the secondary mortgage market, and the UMBS market continues to operate at its normal level.”
Federal regulators urged banks such as Wells Fargo and JPMorgan Chase to work “constructively” with borrowers affected by the coronavirus outbreak, promising the companies wouldn’t get dinged by examiners as long as the measures show good judgment.
The joint statement was issued on Monday by the Federal Reserve, the Federal Deposit Insurance Corp., the Office of the Comptroller of the Currency, the National Credit Union Administration, the Conference of State Bank Supervisors and the Consumer Financial Protection Bureau.
“Regulators note that financial institutions should work constructively with borrowers and other customers in affected communities,” the statement said. “Prudent efforts that are consistent with safe and sound lending practices should not be subject to examiner criticism.”