5 ms·

1. Were you laid off recently? If so, are you getting the supplemental $600/week in Federal UI benefits, on top of whatever your State provides? It varies by

by nugget 6y ago

1. Were you laid off recently? If so, are you getting the supplemental $600/week in Federal UI benefits, on top of whatever your State provides? It varies by State but with the Fed supplemental you should be receiving between $835/week (in Mississippi) and $1,423/week (in Massachusetts). If you have kids, the amount may increase further. In most States you will also qualify for free or heavily subsidized health care via the ACA.[1] 2. If your loan is owned by the Feds (as about 90% of private residential mortgages are) then I believe the deferred loan amount is added to the end of your loan via an extension of the amortization schedule. You can also defer payments for up to 12 months. You would not owe a lump sum in August.[2] 3. Even if you quit paying your mortgage and intentionally chose foreclosure as your best option (as many did in 2009-2010), it's unlikely the foreclosure would occur within the next 12 months. [1] https://fileunemployment.org/unemployment-benefits/unemployment-benefits-comparison-by-state/ https://fileunemployment.org/unemployment-benefits/unemploym... [2] https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/ https://www.consumerfinance.gov/about-us/blog/guide-coronavi...

hnrodey 6y ago
A few weeks ago I looked in to the CARES act provisions for mortgages. tl;dr it's largely dependent on how each lender wants to implement. There are lenders that will go the deferred payments then balloon or seek a loan modification. I'm not 100% sure what a loan modification. Other lenders will simply extend the term of your mortgage by how many payments were missed.
- nugget 6y ago
  90% of mortgages in the US are owned or insured by Fannie or Freddie. The Federal Government has provided rules that mortgage servicers are required to follow for these loans. I am guessing that the majority of the other 10%/privately owned mortgages are non-conforming jumbo loans, typically in more expensive areas.
  - csharptwdec19 6y ago
    FWIW the rules were a bit murkier until within the last week additional guidelines were released.
    - hnrodey 6y ago
      Any link/source you can share on that?
      - gamblor956 6y ago
        https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/#relief-options https://www.consumerfinance.gov/about-us/blog/guide-coronavi... Despite the wording, approval is not at the discretion of the financial institution. If the loan is federally backed, the financial institution must approve mortgage relief. Moreover, currently they are not even allowed to seek proof of financial distress.
  - hnrodey 6y ago
    I researched this topic several weeks ago and I stand behind my original post. My researched showed that the intent of the CARES Act was for loan term extensions however that's largely been left up to the discretion of each lender. I have a 30 year fixed rate conforming conventional mortgage. This is ver-batim from their COVID-19 assistance page. >Important: The terms of this Forbearance Plan, and any additional Forbearance Plan(s), do not include forgiveness of any amounts. The total amount of payments suspended during a Forbearance Period will become due and payable at the end of the Forbearance Period, and you will be required to either repay the suspended payments in full or make other arrangements for how you will repay the suspended payments, such as qualifying for a loan modification or another assistance option. If your loan is owned by Fannie Mae or Freddie Mac, or if you have an FHA, VA, or USDA loan, your loan is likely subject to the CARES Act. The CARES Act allows for a forbearance of up to 180 days upon request, with an extension of up to an additional 180 days if your hardship is ongoing. The initial Forbearance Plan suspends payments for three months. If your financial hardship remains at the end of this Forbearance Plan and you are unable to resume your normal monthly payments, contact XXX for assistance. You may request additional Forbearance Plan(s) in three-month increments, up to a total of twelve months from the starting date of this Forbearance Plan, or seek another assistance option. Even if your loan is not covered by the CARES Act, if you have a hardship you may contact us to request assistance. Please call xxx for further assistance.
- gamblor956 6y ago
  It is not dependent on what your lender wants to do. Every federally-backed mortgage is covered.

by nugget 6y ago

hnrodey 6y ago

A few weeks ago I looked in to the CARES act provisions for mortgages. tl;dr it's largely dependent on how each lender wants to implement. There are lenders that will go the deferred payments then balloon or seek a loan modification. I'm not 100% sure what a loan modification. Other lenders will simply extend the term of your mortgage by how many payments were missed.

nugget 6y ago
90% of mortgages in the US are owned or insured by Fannie or Freddie. The Federal Government has provided rules that mortgage servicers are required to follow for these loans. I am guessing that the majority of the other 10%/privately owned mortgages are non-conforming jumbo loans, typically in more expensive areas.
- csharptwdec19 6y ago
  FWIW the rules were a bit murkier until within the last week additional guidelines were released.
  - hnrodey 6y ago
    Any link/source you can share on that?
    - gamblor956 6y ago
      https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/#relief-options https://www.consumerfinance.gov/about-us/blog/guide-coronavi... Despite the wording, approval is not at the discretion of the financial institution. If the loan is federally backed, the financial institution must approve mortgage relief. Moreover, currently they are not even allowed to seek proof of financial distress.
- hnrodey 6y ago
  I researched this topic several weeks ago and I stand behind my original post. My researched showed that the intent of the CARES Act was for loan term extensions however that's largely been left up to the discretion of each lender. I have a 30 year fixed rate conforming conventional mortgage. This is ver-batim from their COVID-19 assistance page. >Important: The terms of this Forbearance Plan, and any additional Forbearance Plan(s), do not include forgiveness of any amounts. The total amount of payments suspended during a Forbearance Period will become due and payable at the end of the Forbearance Period, and you will be required to either repay the suspended payments in full or make other arrangements for how you will repay the suspended payments, such as qualifying for a loan modification or another assistance option. If your loan is owned by Fannie Mae or Freddie Mac, or if you have an FHA, VA, or USDA loan, your loan is likely subject to the CARES Act. The CARES Act allows for a forbearance of up to 180 days upon request, with an extension of up to an additional 180 days if your hardship is ongoing. The initial Forbearance Plan suspends payments for three months. If your financial hardship remains at the end of this Forbearance Plan and you are unable to resume your normal monthly payments, contact XXX for assistance. You may request additional Forbearance Plan(s) in three-month increments, up to a total of twelve months from the starting date of this Forbearance Plan, or seek another assistance option. Even if your loan is not covered by the CARES Act, if you have a hardship you may contact us to request assistance. Please call xxx for further assistance.
gamblor956 6y ago
It is not dependent on what your lender wants to do. Every federally-backed mortgage is covered.