Does the COVID-19 Cares Act Stimulus Plan Allow for You to Skip Mortgage Payments?

What will be the economic impact of the lockdown caused by the Coronavirus? How will this crisis affect YOU personally? The fact is that many people have already experienced a reduction in their income, and many more have or will lose their jobs and income altogether. You may be fearful about how you will make ends meet, and you are right to be concerned.

If you have a mortgage, I’m sure you’re wondering how you will be able to make your monthly payment. Recently a relief bill was approved by Congress and signed by the President. The federal government’s stimulus bill, called the CARES Act, includes a feature allowing homeowners to skip mortgage payments without penalties. Traditionally, skipping your mortgage payments due to a hardship is done through what’s called a forbearance, which has its pros and cons to be careful with; the CARES Act allows for payment deferrals which may be a better solution. 

Here are some additional links that may be helpful:

https://www.bankrate.com/mortgages/mortgage-rates/#survey

https://www.bankrate.com/mortgages/everything-you-should-know-about-mortgage-forbearance/

https://www.knowyouroptions.com/options-to-stay-in-your-home/overview/forbearance

https://www.investopedia.com/how-to-get-mortgage-relief-4800539

https://www.consumerfinance.gov/ask-cfpb/what-is-forbearance-en-289/

If you have any questions relating to your mortgage, or how the real estate market is faring, don’t hesitate to reach out by phone or email at any time. We’re always here to help, no matter your needs.