Every person has been affected in some way or another by the 2020 coronavirus pandemic. Some have lost their jobs, some are just going insane in the membrane, but all of us are doing our best to get through this.
There is so much information going around about resources available to people being financially affected. I wanted to do a roundup of what’s available today so you can take advantage if you need.
The U.S. Department of Housing and Urban Development has placed a moratorium on foreclosures if your loan is backed by Fannie Mae or Freddie Mac (most loans are so please call us to ask). Read about this here.
The Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac may provide payment forbearance for single-family residences provided borrowers could demonstrate financial hardship due to COVID-19. The forbearance may last as long as a year.
FHFA also said that Fannie Mae and Freddie Mac will grant mortgage forbearance to owners of multifamily properties in exchange for suspending evictions.
The forbearance is simply a pause on having to make your mortgage payments. Interest and payments will still accrue during that time, will be added to your balance, and may result in a balloon payment at the end of the forbearance period.
Additionally, there is much confusion as to what will happen at the end of the forbearance. Will the past due amount be due in a lump sum or balloon payment? Will it be added to the end of the loan? These items will vary from lender to lender, so please make sure you ask diligent questions and do a lot of research as to what a forbearance really means and how it will impact you going forward.
How to Take Advantage: call us or your mortgage servicer (the company on your mortgage statement), ask if your loan is backed by Fannie Mae or Freddie Mac (chances are high it is), and ask about pausing your mortgage payments.
Student Loan Debt
On March 13, President Trump said all interest on federal student loans would be waived for the duration of the coronavirus emergency. Additionally, you can put your monthly payments on pause for at least 60 days during the crisis. (Hint: you could actually already do this!) Read more about this here and here.
How to Take Advantage: to pause your payments, contact your student loan company and ask them. For interest relief, watch your student loan statements. Any interest charged during the emergency should be eliminated retroactively, according to the Department of Education.
Federal Tax Filing
The IRS has pushed federal Tax Day from April 15 to July 15. You no longer need to file or pay until July 15.
How to Take Advantage: simply relax for three more months!
Xfinity has opened their WiFi Public Hotspots to everybody. Learn more here.
How to Take Advantage: simply connect to the nearest “xfinitywifi” network near you and follow the prompts.