Good news for all borrowers! The Trump administration will allow delay in mortgage payments for all low-income households in America suffering by the coronavirus side effect, economical crisis. The plan will be set by the government along with mortgage lenders and real estate trade groups.
During these difficult times, several countries worldwide have taken action and suspended temporarily mortgage payments, like Italy, for instance.
This measure is necessary in order to stop or minimize the spread of coronavirus, a highly mortal disease to the elderly, that is affecting the world's economy in every way.
However, the administration has not revealed how or when the borrowers will eventually catch up with payments.
During this uncertain period of time experts have commented that the plan makes sense and this decision will benefit the country's economy since it will indeed help minimize the curve from the spread of the virus allowing people to stay home and quarantine without worrying about this monthly payment for a while.
On another hand, it is suggested by realtors that the plan to be approved should be the same across all mortgage servicers, to avoid confusion and future issues.
In addition, President Trump has recently ordered the HUD (Department of Housing and Urban Development) to temporarily suspend evictions and foreclosures on HUD-backed properties until the end of April.
The FHFA (Federal Housing Finance Agency) announced as well that will direct Fannie Mae and Freddie Mac to suspend evictions and foreclosures for at least 60 days for all property owners with mortgage-backed by sponsored firms by the government.
Uncertain economic times are upon us and borrowers could worry about their credit scores, some might be thinking what they can do to not fall behind with payments. Therefore, these measures have been taken to protect borrowers from losing their homes since the situation has worsened due to coronavirus outbreak.
Also, the newly introduced legislation "Disaster Protection for All Workers' Credit Act" (S3508), created to protect the impact on American credit reports due to coronavirus (COVID-19) outbreak, will "institute an immediate four-month moratorium on all negative credit reporting, with extended protections for people who face lasting financial hardship from the outbreak. It will also provide free unlimited credit reports and credit scores for a year after the end of the crisis, and would extend the same protections to people impacted by future major disasters".
Try to remain calm during these hard times, don't worry about credit scores, foreclosure, and mortgage payments at the moment, keep your family safe and stay healthy!