The COVID-19 pandemic is causing a financial crisis that is reminding many of us of the Great Recession of 2008. Just like many people then, you might be in danger of losing your home to foreclosure because you have lost your job and can’t pay your mortgage. This time around, however, you do have some protections. You need to understand what they are so that you can save your home and protect your credit.
What Does the CARES Act Do for Homeowners?
The federal Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed in April of 2020 to help individuals and families struggling with the economic impact of the COVID-19 pandemic. Designed to help people who have lost their jobs because of mandatory closures or who have contracted the virus and been ill, the law provides some relief from foreclosure. As you will learn when you read our free report, you have the following protections under the CARES Act:
- Your bank can’t foreclose on your home. If your loan is federally insured, your bank can’t begin or finalize a foreclosure for 60 days after March 18, 2020.
- Your bank has to allow you to stop making payments. If you notify your bank servicer that you can’t pay your mortgage because of COVID-19-related financial trouble, part or all of your mortgage payments may be delayed by the bank, called “forbearance,” for up to 180 days.
- Your bank can’t charge you late fees or hurt your credit. If you claim a right to forbearance, your bank can’t charge you late fees, and all the other mortgage foreclosure fees that increase your debt. And, they have to report your mortgage as “current” to the credit bureaus.
Even though you have a right to these protections, it doesn’t mean the bank will honor those rights. It’s up to you to make sure your lender obeys the law.
Our Free Report Outlines 5 Steps You Should Take Now
If you are worried about the bank foreclosing on your home, you need to take a few important steps now to protect yourself. When you request a free download of our helpful and timely report, you will get a checklist of things you can do now to protect your home and your credit. After you have this information, we invite you to call our firm to help you stand up to the banks. We did this for clients back in 2008, and we’re ready to do it again. Fill out our request form to get our free report as an immediate download.