Many people world wide are facing reduced hours or have been laid off from their jobs completely. Shelter and food are basic necessities. What do you do if you can’t pay your mortgage or rent?
On March 18th, the Trump Administration stated that “all foreclosures and evictions” will be suspended until the end of April. The Federal Housing Administration is considering programs with a greater grace period. Some local municipalities have implemented their own programs.
If you find yourself in this situation, you should contact your lender or landlord directly and discuss your options.
Here are a few questions to ask / factors to consider if you have a mortgage:
Does your lender have a COVID-19 waiver program?
Does your lender have a hardship program?
What effects will a missed payment have on your loan (accrued interest, adjustment to the terms of your loan, etc.)?
Will they report a missed or late payment during this pandemic to the credit bureaus?
What does the application process entail and when can you start?
If you rent a home, this poses a problem for both you and your landlord. Your landlord may be in a situation where they utilize the payments you remit to satisfy their mortgage obligation. If you are unable to fulfill your end of the bargain, it effects all parties involved. Communicate with them as soon as you can so they too can prepare. If you can pay a portion of your rent, ask if partial payments can be made for a period of time (until you have income). Get everything in writing, with clear payment dates and amounts that everyone can find agreeable.
If you are in an apartment, reach out to the apartment manager and explain your situation. They may also be willing to accept partial payments for a period of time (until you have income).
It is best to address things as soon as you are aware that there may be an issue. This gives you more time and potentially more options. Find out what resources are available to you before your rent or mortgage payments are actually behind.
This season will pass. Control what you can now and position yourself to be on solid ground once this storm passes.