Tuesday, July 28, 2020 / by Vanessa Saunders
By Vanessa Saunders, MBA, MIMC , Broker Owner, Global Property Systems Real Estate.
As politicians in our legislatures grind on trying to agree on how much less out-of-work Americans can receive in unemployment payments, the clock is ticking for home-owners trying to figure out a way to make the mortgage payment next month. For those of you who have never been in this situation, this is a reminder that you do have options to get help.
Temporary Mortgage Relief Due to Coronavirus Pandemic
In response to the Coronavirus pandemic, under the CARES Act, the owners of single-family homes with federally-backed mortgages can get two types of financial help.
Eviction and Foreclosure Moratorium
An eviction and foreclosure moratorium that went into effect on March 18, 2020, has been extended again. It now continues until August 31, 2020. During that time, homeowners:
-Will not be charged late fees
-Will not be evicted from their homes
-Will not initiate foreclosure proceedings
-Will suspend foreclosure proceedings already in process
This program applies to all federally backed (FHA and HUD) home mortgages. Borrowers are eligible for forbearance regardless of whether their property is owner occupied, a second home or an investment property.
For many, refinancing may be the better solution, because mortgage interest rates are at historic lows. Refinancing your mortgage allows you to pay off your existing mortgage and take out a new mortgage on new terms. You may want to refinance your mortgage to take advantage of lower interest rates, to change your type of mortgage, or for other reasons.
Barry Goldenberg of Luxury Mortgage is a highly-recommended Global Property Systems mortgage lender on the Global Property team. If you need to speak with a lender knowledgeable about mortgage re-financing, call Barry at: (516) 398-9511 (Mobile Line).
WWW.USA.Gov, a federal website has information and publications designed to help home owners who need to learn more about refinancing:
A Consumer's Guide to Mortgage Refinancing is a good place to start for an introduction to mortgage refinancing, including useful worksheets, a glossary of terms used in the industry, and more to help you decide if mortgage refinancing is right for you.
What type of mortgage should you choose? Get information about mortgage types and the settlement process in Buying Your Home: Settlement Costs Booklet.
Veterans may be eligible for refinancing their VA mortgage using Interest Rate Reduction Refinancing Loans (IRRRL).
If you are struggling to make your mortgage payments or believe you may fall behind on your payments soon, don’t wait – contact your loan servicer now. They’re here to help you.