No one should lose his home because of Covid-19

May 19, 2020

Dear clients past and present, fellow real estate professionals, neighbors and friends…

 

All of us know someone who needs a phone call or a personal message, and we all have family or  friends who may need pandemic-related housing information. 

I am sending this letter to pass along recently published information, please pass it on to someone who needs it.

No one should lose his home because of Covid-19.  On May 13, Kerry Smith, “Florida Realtor” staff writer published information about a one-stop website for homeowners and renters to give them tools to find programs that work for them.  The Consumer Financial Protection Bureau (CFPB), Federal Housing Finance Agency (FHFA), and the Department of Housing and Urban Development (HUD), joined together in this project.  The website is https://www.cfpb.gov/housing, and should “help homeowners and renters navigate these unprecedented times.”

It is generally understood,  those homeowners with mortgages backed by FHA, VA, Fannie Mae or Freddie Mac, may request an initial 180 days payment forebearance, after which they may also request an additional 180 days.  Please let your lender know if you are a veteran or current military service member.   Once the homeowner is able to resume mortgage payments, he will discuss with his lender his options to bring his mortgage current, which may include modification of loan term, refinance of the existing mortgage or some other work-out solution including time to sell the home.  Before confirming the elected option my understanding is he will  be required to make 3 consecutive month payments on time, more or less a show of good faith, in order to proceed on the course selected.  It is my further understanding, borrowers who are eligible may be able to take advantage of our record low mortgage rates,  meaning refinance or buy a new home, three months after their forbearance ends, i.e. after three consecutive payments under their repayment plan, payment deferral option, or loan modification.

 

Below are two  related links published in the past week which could relieve some anxiety for homeowners whose finances have been significantly impacted  by Covid-19.

https://realtytimes.com/archives/item/1037922-phew-no-lump-sum-at-the-end-of-forbearance-for-fannie-and-freddie-loans?fbclid=IwAR2VSKGLrzjFB4KW_z8yxczETDGFMXTqdzoIarDJUr_Gz72tCMuTOWrN2u8

https://www.floridarealtors.org/news-media/news-articles/2020/05/fhfa-allow-deferred-repayments-homeowners-forebearance?fbclid=IwAR1HfC3UMm_J5ZkqM5BV9mGCVTfLOvc4W016qSAobG7rjoocBbtFlXQlICg

I hope this information helps those who need it.  And I will repeat what I said last month, because  I see strong indications of buyers returning to the market now.  Inventory is low, which is good news for current sellers, where buying  decisions may come quickly.  If you are a buyer who is ready or needs to make a move, get out there and you might make a very good deal on the home you like and want for your family … Sellers will appreciate you more than ever.

Contact me if you have questions, go well, with best regards,

 

joan

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