Americans Getting a Yearlong Break on Mortgage Payments
Homeowners who have lost income or their jobs because of the coronavirus outbreak are getting some relief. Depending on their situation, they could have their mortgage payments reduced or suspended for up to 12 months. Federal regulators are ordering lenders to offer homeowners some flexibility. The director of the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac, says people who have suffered a loss of income can qualify to make reduced payments or be granted a complete pause in payments. But… people can't just stop paying their mortgage. They need to contact their lender. The Housing Finance director says people can verbally testify to their hardship over the phone with their lender. “You're not going to have to send 20 pieces of paper at the front of this. We want to do it quickly.” The documentation can be handled later. These moves don't do anything to help renters, but many municipalities are halting evictions for people who can't pay rent.