The CARES Act has put in safeguards and allowed homeowners to file a forbearance on their home if they cannot pay monthly mortgages. This means that your payments will be paused for up to six months.
RESOURCE: CONSUMER FINANCE OUTLINES FORBEARANCE
"Folks really don't have to provide much documentation to their mortgage servicers to obtain a forbearance," Colden Ray, Housing Programs Manager at Belmont Housing, said. "They just basically have to request it in good faith, obviously…They can be put on a forbearance if their mortgage is insured by the federal government, meaning it's an FHA loan, it's a VA loan, or USDA loan, or if the loan has a government investor."
FAQ ON HOUSING FROM HOUSE COMMITTEE OF FINANCIAL SERVICES
She said that people who do not have a government loan may have to pay back the lump sum that was missed over the past few months, though there may be a government program that gives some protections to people in this scenario.
33 million Americans have filed for unemployment benefits, including more than 1.8 million New Yorkers, according to the state labor departments.
The forbearance does not erase what you owe. You'll have to repay what you missed in the future.
"The loan (could) go into default almost immediately," Peter Hunt of Hunt Real Estate warned. "That's something you want to avoid at all cost. Then, that kicks back to us and that is a problem because I think people have the entire wrong impression of the CARES Act."
What about my credit rating?
Anyone who has ever borrowed knows the dangers of missing a payment on any sort of loan. However, the CARES act has a provision that protects those of you who miss out on a payment due to the pandemic.
