Here is How you Can Receive $10 Billion Of Covid-19 Mortgage Aid
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Via forbes.com
Mortgage Relief
Inside the latest stimulus package, there’s a lesser known type of Covid-19 relief that could help millions of homeowners who are behind on their mortgage payments. While most Americans are focused on $1,400 stimulus checks, there’s also approximately $10 billion of Coronavirus mortgage relief available to help homeowners pay their mortgage. Here’s how to qualify:
Mortgage aid: How it works
- The Homeowners Assistance Fund can help you pay not only your mortgage, but also your taxes, insurance, utilities and common charges like monthly homeowners association dues.
- The U.S. Treasury Department is sending money to states to distribute direct financial assistance through state housing agencies.
- The amount of mortgage aid depends on each state’s number of late mortgage payments, foreclosures and unemployment statistics, for example.
- States must spend this Covid-19 mortgage relief by September 30, 2025.
- Contact your state housing agency to learn more about Covid-19 mortgage relief in your state.
Mortgage relief: how to qualify
- You must own your home.
- You must have a mortgage.
- Your mortgage balance in 2021 must be less than $548,250.
- Funds will be available to mortgage borrowers who are struggling to pay off their mortgage.
- At least 60% of the mortgage aid must be allocated to mortgage borrowers who have an income that is less than the national median income or the respective local median income, whichever is higher.
Mortgage forbearance
This mortgage relief is in addition to a federal mortorium on mortgage forclosure as a result of the Covid-19 pandemic. Currently, this mortgage foreclosure ban is in effect through the end of next month, although it’s possible that the Biden administration extends this program. If not, millions of mortgage borrowers could face foreclosure, which could not only result in homeowners losing their home, but also spending as much as $12,500 in the foreclosure process. For federally-backed mortgage loans, homeowners can get forbearance and postpone their mortgage payments up to 18 months. Contact your mortgage loan servicer (the company to whom you send your mortgage payments) to get forbearance. You can check the Mortgage Electronic Registration Systems (MERS) website to find your mortgage loan servicer. You can also ask your loan servicer whether your mortgage loan is federally-backed through Fannie Mae or Freddie Mac, for example, which are government-sponsored enterprises that back most federal mortgage loans. According to the Consumer Financial Protection Bureau (CFPB), “more homeowners are behind on their mortgage than at any time since 2010, which was the peak of the Great Recession.” Based on the latest mortgage statistics, as of February 2021, nearly 3 million homeowners are behind on their mortgages. Approximately 2.1 million mortgages are in forbearance and at least 90 days delinquent.
Alternatively, you can consider refinancing your mortgage to save money and pay off your mortgage faster. This mortgage calculator shows you how much money you can save when you buy a home or refinance your mortgage.