Protect Your Financial Health & Credit During COVID-19 ... Take These Steps Now

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Mortgage and Lending with NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 IL Lic 031.0006220/WI
https://activerain.com/droplet/5nnw

 

 

Protect Your Financial Health & Credit During COVID-19 ...

Take These Steps Now

 

 

Your physical health and mental well-being must always be an important focus.  The grave challenges posed by the current COVID-19 crisis, make that even more true ...

But it's not only your physical and mental health that should remain of concern.  Your financial health is important as well.


COVID-19 has delivered some severe financial health challenges to many Americans' doorsteps.  Those include loss of employment, job furloughs, layoffs, diminished wages (and more) that have taken a real toll.

No amount of handwashing or wearing of masks protects your financial health.  That has to be accomplished in other ways.  

So what steps can you take to protect yourself or get back on the road to good health when it comes to your credit, credit scores, and finances?

First, assess your financial position and health head-on.  

 

Pull your credit report so you're knowledgable regarding your current financial reality.  It's important to know the facts.  It's also important to know your Credit Report is accurate and accounts are reported to correctly.  

But checking just once is not enough ...  

Continue to monitor your credit on a consistent basis.  Make sure to monitor for identity theft during this time, as this type of scam has been on the rise during this crisis.

When it comes to credit health and credit scores, there is a "pecking order" of importance when it comes to payment of debt.  That importance rests upon whether a debt is a secured or unsecured debt.  Secured obligations should be addressed first.

If you have a mortgage (secured debt) and you know you will not be able to make your monthly mortgage payment(s), contact your mortgage lender immediately.  Act proactively regarding your mortgage payments.  

It's important to know:

  1. You should NOT wait until you have already missed payment(s) to communicate with your Lender
  2. That you are NOT absolved from debt responsibilities via the actions you take
  3. Good news exists.  It's possible that mortgage solutions or accommodations exist/may be available that will be of assistance to you during this difficult time  
  4. The sooner you take action, the better.  (Read my article, "The Who, What, When, Where & How of Mortgage Forbearance" for additional insight and guidance regarding available options).

 

It's important to know ...  


The recently passed CARES Act requires that Lenders/Creditors report accounts that have payment accommodation applied to them as "current" to the credit bureaus ... but the account must have been current when the accommodation was put into place.  

So I stress this point again ... do not wait to take action in this regard.

The same advice applies to auto loans, also a secured debt.  Reach out to your auto loan provider immediately to see what options are available to you as an option for monthly auto payment/financial relief. 

It should be noted:  The CARES Act also provides some relief options to those with Federal Student LoansMuch depends on your Student Loan servicer, so reach out to them ASAP to find what relief or aid might be available to you. 

Communications with (unsecured) service providers, such as gas and electricity providers, cable, cell, etc., is paramount should you know that you will not be able to pay your monthly bills/obligations.  Some providers offer financial relief measures, others do not.

Don't hesitate to ask if:

  • Your payment can be lowered 
  • Flexible payment plans exist 
  • Other payment options are available to you

Providers are far more likely to work something out if you have taken action proactively.

Your payment history remains vitally important in the status/building of your credit scores during this time, as FICO Scores rely heavily on them.  While you may sustain some damage to your score while facing COVID-19 challenges, the damage may be limited or reduced, should you take action to protect it.  

Currently, aid and relief options made possible by the CARES Act are available for a limited amount of time.  Staying educated as to possible changes and opportunities are readily available via the Consumers Financial Protection Bureau (CFPB) coronavirus/COVID-19 information.

It cannot be stressed enough:  If you wish to limit the potential financial/credit impact you face as a result of current COVID -19 challenges, take action proactively to do so.  That is how you may provide yourself the most relief and financial protection ... and the method through which your credit scores will be affected least.

Communicate early.  Stay in touch with your lender and all service providers throughout the financial challenges you face.  

Your financial health, both in the short and long term, will be much better for it ...

 

 

 

* Are you dreaming of buying or refinancing a home or Investment Property in New Lenox - Will County - Chicago - Chicagoland - IL/WI?

Contact me today! I'll put my 40 years of mortgage experience and expertise to work on your behalf.
I'm easily found at:


 
Gene Mundt
 
Mortgage Originator - NMLS #216987 - IL Lic. 031.0006220 - WI License #216987
 
American Portfolio Mortgage Corp
NMLS #175656
 
 
Direct: 815.524.2280
Cell: 708.921.6331
eFax: 815.524.2281

 

 

 

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Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                 IL Lic. #031.0006220  -  WI License #216987                                                                                                    

NMLS #175656

 

Gene Mundt, Mortgage Originator,  40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking:  #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including:  The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 

 

Your Referrals & Testimonials are Always Greatly Appreciated! 

 

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Roy Kelley 07/04/2020 11:30 AM
Topic:
Lending / Financial
Location:
Illinois Will County New Lenox
Groups:
Mortgages
Home & Credit Savvy
Consumer Mortgage Tips
Bananatude
WillCounty
Tags:
credit scores
credit reports
fico scores
financial advice
protecting your credit
mortgage information
paying bills
financial health
credit protections

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Show All Comments
Rainmaker
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John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi   Very true, it is important to protect financial health and credit during Covid-19.

May 27, 2020 12:44 PM #1
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Gene this is good information and advice.  Also FHFA's guideline change to allow homeowners in forbearance on their mortgage to be able to still qualify to purchase a home or refinance a property is a big help as well.

May 27, 2020 12:50 PM #2
Rainmaker
3,463,935
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

What a great post, Gene... then again, all your posts are so! I'm seeing people take all sorts of actions vis-a-vis their mortgages and personal loans without first thinking through the longer term implications of what they are doing.

May 28, 2020 04:51 AM #3
Rainmaker
5,832,429
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Good Friday morning, Gene.

Take care, be safe and have a productive day.

May 29, 2020 05:20 AM #5
Ambassador
2,030,803
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

We had a young couple call us last week, they are wanting to move into another area in our County. We offered them advice about getting their current home and yard in tip top shape prior to the sale. They let us know it will take them a month or so and asked for contractors. We sent them our list to choose from. Meantime, the Mrs keeps sending us links to homes she loves. We ask if they will need a loan, and if so, advise them to call their lender.  She called us two days ago, they are in loan forebearance. She was astounded they can't qualify for a new loan until they are able to pay their back payments on their mortgage. Really? Oh my gosh, I just can't believe some folks don't ask questions and consider what they are doing. 

May 30, 2020 07:07 AM #6
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Rainmaker
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Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

708.921.6331 - 40+ yrs experience
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