Housing protection
Mortgage Payment Delay
“The Trump administration is considering a plan to allow homeowners whose income was cut by the coronavirus to delay mortgage payments. Still to be decided is a mechanism for borrowers to catch up.”
Mortgage Relief Options
Homeowners who are facing a temporary hardship due to the coronavirus and heightened safety measures such as businesses shutting down have options to postpone mortgage payments, according to the Federal Housing Finance Agency.
In an effort to stave off foreclosures, FHFA director Mark Calabria advised mortgage servicers this week to offer forbearance options to those who might be in jeopardy of falling behind on mortgage payments.
With this option, a lender temporarily reduces or suspends mortgage payments for up to six months while borrowers get back on their feet. Interest will still accrue and be tacked back onto the loan.
Forbearance is often combined with a reinstatement or a repayment plan to pay off the missed or reduced mortgage payments when a homeowner’s financial situation has stabilized.
Protection against evictions, foreclosures and utility shut-offs
Source Office of California Governor Gavin Newsom
California Governor Gavin Newsom issued an executive order on March 16, 2020 authorizing local governments to halt evictions for renters and homeowners, slows foreclosures, and protects against utility shutoffs for Californians affected by COVID-19; the order does not relieve a tenant from the obligation to pay rent, or restrict the landlord’s ability to recover rent that is due. The protections are in effect through May 31, 2020, unless extended. The order also requests banks and other financial institutions to halt foreclosures and related evictions during this time period.