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How do you delay your rent or mortgage payment during the coronavirus pandemic?
Millions of people have filed for unemployment in recent weeks due to national and state measures to curb the spread of the virus, and many are now wondering if they can delay their monthly rent payments or qualify for mortgage relief on their house.
The simple answer is that it depends on where you live and what your landlord or mortgage company’s policy is. There is not yet a national policy on mortgage or rent relief. However, many national banks like JPMorgan, Wells Fargo and U.S. Bank have agreed to a 90-day grace period for mortgage payments for people who are impacted by the pandemic.
Here’s what you need to know:
Do You Qualify for Mortgage Relief? Here’s How to Find Out
Families should not lose their homes because of COVID-19. Very pleased that Wells Fargo, Citi, JPMorgan, and US Bank have agreed to a 90 day grace period for mortgage payments for those impacted by #COVID19.
A big sigh of relief for millions of CA families.
Several cities and states have started to pass resolutions calling on the White House to place a moratorium on rent and mortgage payments until the outbreak passes and people are able to work again. However, there has been no national moratorium established for that purpose thus far.
If you want to apply for mortgage relief, you’ll likely have to contact your bank and see if they offer payment deferral options. Per Forbes, a number of banks have set up payment plans for people impacted by COVID-19, many of which include 90-day payment deferrals on loans and mortgages. These banks include Wells Fargo, Citi, JPMorgan and U.S. Bank. So if you have a mortgage with any of these banks, you are eligible for that 90-day grace period. However, you should still check with your mortgage company to confirm this eligibility and to stay tuned to see if your payments can be further delayed.
If your mortgage is backed by the federal government, you’re likely eligible to suspend your mortgage payments up to 12 months, thanks to a provision in the CARES Act. You can read more about that via Investopedia.
Can You Delay Your Rent Payment? Can Your Landlord Evict You if You Can’t Pay on Time?
I just don’t understand how it’s reasonable to expect what could be millions of people and small businesses, who suddenly had their incomes cut off, to pay rent, mortgages, & major bills on Apr 1st without any payment moratoriums or immediate relief.
Several federal, state and local programs have suspended all evictions in a given area for up to 90 days because of COVID-19. So your landlord might not be able to evict you if you can’t pay rent on time, but this doesn’t mean you’re free of the obligation to pay your rent.
Rather, it could mean that in 90 days, you owe three months’ rent plus late fees. If you need help paying your rent and you qualify for a stimulus check, you might consider putting that towards your rent. You can also look into the social service agencies in your area that might be able to help.
If You Can Still Pay Your Mortgage, Do
If you aren’t able to pay your mortgage in full, you should contact your mortgage servicer immediately, the Consumer Financial Protection Bureau says. But if you can continue to pay in full, you should. “Don’t call your mortgage servicer if you aren’t facing an immediate issue. Mortgage servicers are getting a lot of calls and need to first help those who won’t be able to pay their mortgage,” the CFPB website says. You can find details on mortgage relief and links to related content on the CFPB website.
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