Mortgage Relief During Coronavirus Offers Several Options
Many Chicago area and suburban residents are wondering how they are going to pay their rent and mortgage payments after losing their income sources and suffering financial losses because of the Conoavirus outbreak. Many businesses remain shut down with no clear indication of when they can and will be able to reopen. But in the meantime, the rent and mortgage still have to be paid or many are going to face evictions and foreclosures.
Just as the Coronavirus spread quickly, the financial aid packages and options are being put together and offered to people quickly. What also comes along quickly are utility, food, gas, and grocery bills. Some people are trying to stretch limited resources and are trying to figure out whether to keep the lights on and food on the table, or make their mortgage or rent payment on time.
Homeowners with equity in their homes can use that equity to do a cash-out refinance and use the money to pay bills. This may also be a good time to refinance your mortgage and lower your monthly payments.
CBS News Offers Information on the Government Stimulus. Watch -> Stimulus Checks: Who Gets One? Who Doesn’t?
Bank of America Offers Mortgage Relief During Coronavirus Crisis
The payments will be added to the end of the loan term, but small business and consumer clients can defer their mortgage payments using a Bank of America program designed to help their customers who need mortgage relief during Coronavirus financial crises such as business shutdowns and interruptions to income for businesses forced to close their doors and send employees home.
Here is a link for Bank of America Payment Deferral Requests
Each request for mortgage loan deferments will be made on a case-by-case basis. Bank of America customers can also defer payments on things like small business loans, automobile loans, and credit card payments, for those customers who qualify for Coronavirus financial relief.
What are Governments Doing to Help with Rent and Mortgage Relief?
The city of Chicago will give residence who have suffered to pay rent and mortgage payments, $1,000 grants, on a one-time basis. Chicago Mayor Lori Lightfoot announced the COVID-19 Housing Assistance Grant on Friday, March 27th, for Chicagoans who lost their jobs or have been financially impacted by the Coronavirus pandemic. The city of Chicago Affordable Housing Opportunity Fund is the source of $2 million in payments to residents in need to keep them safe and secure.
See the City of Chicago Coronavirus website to apply for rent and mortgage relief
Fannie Mae, Freddie Mac, and the Federal Home Loan Banks are working on relief for people impacted by the Coronavirus. If you cannot pay your mortgage, loans owned by Fannie Mae or Freddie Mac may be eligible for deferments on mortgage payments. Qualifying applicants for relief will not incur late fees, have reported delinquencies or foreclosures or legal proceedings while in payment deferment.
For more FHA Coronavirus assistance information click here or contact our mortgage servicer as soon as possible.
Options for Mortgage Relief Through Private Companies and Banks
In this article, we offer an overview of different financial relief options for Coronavirus mortgage relief, but this is not a complete list of all the options. Most major banks and commercial mortgage lenders have some sort of program available to help people defer their mortgage payments until they can afford to make on-time payments after the Coronavirus outbreak is over and people are back to work.
It makes sense for lenders to offer these options because the people who suddenly cannot make their payments are a good credit risk. If they had good jobs before they will have good jobs again. While financial recovery might take longer for some, there is light at the end of the tunnel and most of the mortgage lenders will get financial assistance of some sort for themselves.
Landlords Want to Be Paid, May Owe Their Mortgages, and May Be Lenient
While some landlords own their buildings in full, many have mortgages to pay. Talk to your landlord about financial concerns and see what they have to say. For all you know, they have a little room with making their mortgage payments because of the Coronavirus and they might be able to wait longer than usual for you to make your rent payment. Many landlords of Chicago area rental buildings want to keep good tenants who regularly pay their rents when things are normal, and right now things are not normal.
Bankruptcy May Also Give You Mortgage Relief During Coronavirus
Bankruptcy can also be an option to keep your home. If you already had mounting debts and credit cards you couldn’t pay, a Chapter 13 reorganization bankruptcy might be a good option for you, and it will allow you to keep your house and take three to five years to get caught up on your mortgage and financial obligations.
Joseph Wrobel is an experienced Chicago Bankruptcy Attorney who can help you figure out if you should take advantage of either Chapter 7 Bankruptcy or Chapter 13 Bankruptcy, to save your car, home and sanity during this unprecedented time.
Call the Chicago Bankruptcy Law Firm of Joseph Wrobel, Ltd. for Mortgage Relief During Coronavirus at (312) 781-0996