For Most Americans the largest asset they have is their home. The prediction of massive layoffs due to Covid-19 has many folks concerned they may be in danger of losing their homes.
In order to help reduce anxiety we have organized some essential facts for you.
Fact Number One: If your mortgage is backed by the United States Department of Housing and Urban Development, (HUD) the government has directed that those mortgage services not begin any new foreclosures and halt those already in progress
Fact Number Two: If your loan is backed by Freddie or Fannie May you may also be covered by this program. If your loan is not backed by HUD of FHFA you the servicers are still expected to comply with Federal Regulations. Please check with the servicer of your mortgage for the facts of your specific situation.
Fact Number Three: The halt on foreclosures is expected to last until Mid May but depending on circumstances may be extended by regulators.
Fact Number Four: Borrowers who are experiencing an inability to pay their mortgage as a direct result of Covid-19 should apply for mortgage relief through their mortgage servicer. some estimates are that relief may continue until May of 2021.
Please be certain to understand how the missed payments will be repaid. Some programs will extend the length of the loan while others may require a lump sum payment .Always keep in mind even in the most stressful of times when you feel paralyzing anxiety there often exist options which offer relief. The best life skill is always to educate your self with facts rather than imagined fears of the worst case scenarios.
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Greg Rossi is a Licensed Therapist in Pennsylvania and New Jersey and a Licensed Clinical Alcohol and Drug Counselor and is a Consultant to The Marriage and Family Resource Center n Bucks County, Pennsylvania.
Joan A. Feinstein is a Psychologist and Attorney Pennsylvania and New Jersey and is the Director of The Marriage and Family Resource Center and is an attorney with the Lento Law Group, P.C. in Philadelphia, Pennsylvania