Corona Virus Update: While you are fighting to reduce the spread of the virus, we are fighting to save your home!!
Last week I reported that on March 18 the government announced that it was stopping foreclosures on all FHA insured loans and loans owed by Fannie Mae and Freddie Mac for 60 days.
To determine if a loan is FHA-insured, look for an FHA case number on the mortgage document, specific language in the mortgage and note forms, or for the payment of an FHA premium on the mortgage statement.
Here are the sites you can use to determine if your loan is backed by Fannie Mae or Freddie Mac:
Fannie Mae: https://www.knowyouroptions.com/loanlookup
Freddie Mac: https://ww3.freddiemac.com/loanlookup/
If you have an FHA loan or your loan is backed by Fannie Mae or Freddie Mac then you are entitled to the protection from foreclosure. If you are already in foreclosure, your lender will have to put your case on hold. If you are behind on your mortgage payments, your lender won’t be able to file a new foreclosure against you.
The Department of Veterans Affairs has “strongly encouraged” banks servicing VA loans to give a 60-day moratorium on foreclosures as well.
Many banks — even those servicing conventional loans that are not backed by the Fannie or Freddie — are offering a 3 month forbearance on mortgage payments. That’s really good news for people whose hours have been cut or who have lost their jobs altogether.
Corona Crisis Help for Landlords/Renters
Millions of tenants are out of work and can’t pay their rent because of the coronavirus.
In order to help renters in multi-family properties, Fannie Mae and Freddie Mac have come up with a very creative idea: Landlords of multi-family rental properties will not have to pay their mortgages on the condition that they don’t evict tenants who can’t pay rent because they have been negatively effected by this crisis.
The government believes that landlords shouldn’t have to worry about losing their properties and renters should not have to worry about losing their homes because of this virus and its effects on our economy. It’s hard to shelter in place, if you don’t have a place.
If you are a landlord, use the links above to confirm if Fannie or Freddie owns your loan. If one of them does, you may be able to qualify to skip mortgage payments during this crisis.
If you are a tenant in a multi-family unit whose owner is participating in this program, you can’t be evicted by your landlord. The eviction suspension is in place for the duration of the time that the landlord is not paying his/her mortgage.
When it comes down to this crisis, landlords and tenants are in it together.
Stay tuned! We plan to keep you informed of the relevant mortgage-related information as this crisis pans out.
If you have any questions, feel free to shoot us an email.