Pandemic Missed Payments: Overcoming Financial Struggles

During the pandemic, a lot of Americans are trying to get back on their feet. Some may have lost their jobs, while others could’ve taken less pay to stay with their job. That tends to be a problem, especially if you’ve got a lot of bills to pay.

This is particularly disastrous, especially if you’ve got bills to pay. Some bills cannot be missed, like credit card payments, utilities, and of course, your mortgage. However, some payments for mortgage loans can be deferred, as there are thankfully new ways to pay off in increments. The pandemic also brought that through banks actually helping their clients.

Right now, your best plan would be to keep your credit score up. Letting it decline to ‘poor’ wouldn’t be in your favor as you need it to be in the green during the pandemic. Here’s how you can avoid that happening.

Reach Out to Your Lender

If you are having difficulties paying your mortgage, let your lender know about it. Like previously said, considerations are being made during the time of the pandemic. Your lender may even be knowledgeable about these steps to keep yourself out of debt. If you’re seriously considering trying to avoid having a bad score, do this quick.

You can also do this if you think you’re going to have a problem with future payments. Get in touch with the person who handles your credit card or your account; they’ll know what you need and what to do.

Study the CARES Act

The CARES Act was signed into law last March, an after-effect of the current COVID-19 pandemic. This law helps people find relief from their payments. Anyone who requests or invokes this act is entitled to mortgage forbearance for almost a year. During that time, you can keep most of your money with you, as you’re not pestered to make payments for your mortgage.

This doesn’t mean that you’re free from debt already. You’re not required to make payments but remember that whatever debts you have are deferred. The deal is for you to catch up with your payments before the forbearance ends. Your lender cannot ask for a big lump-sum payment, though, which is what the CARES Act really protects against.

Review Your Mortgage

One of the many provisions of the CARES Act is to grant forbearance, but not all mortgage repayments are covered by this. The National Housing Law Project has revealed that this law covers around 70 percent of mortgages, so there’s a big chance that your mortgage might be under this ruling. In this case, it’s going to be an easier time for you to hold payments—at least during the pandemic.

If you want to be sure, Fannie Mae and Freddie Mac have online apps that you can use to see if your mortgage can be covered. Provide your name, address, and the last four digits of your Security Number, and you’ll see the information.

Know How Long You Need that Relief

It’s somewhat confusing how to know when you’re allowed forbearance. The description clearly states that mortgage payments can be skipped for up to 180 days, but only if asked for. You should make sure that you specify that amount of waiting if you’re asking for a forbearance.

This law has a lot of protection against penalties and other things your clients may illegally use against you. If your landlord or the person handling your account is still asking you for payment despite having invoked the CARES Act, you can bring that case up to the authorities.

Never Be Too Shy to Ask for Help

The pandemic has made people ask for help regarding their mortgage loans and other payments. But if you find yourself struggling outside of the pandemic, you can still find help with professionals. After all, if the lender doesn’t get you to pay your loan, then that would be bad for business, wouldn’t it? That’s why they would be more than willing to help you solve your budget deficit.

This doesn’t only apply to mortgage lenders. If you’re having some trouble with your credit cards, you can also find a solution in the form of forbearance. Try to look for ways to relieve some debt stress with other loans.

It’s a pandemic; people are struggling not just with loans but with other issues as well. As with loans or with other problems, communication makes things easier. Don’t suffer in silence. Ask someone for advice or help on how to deal with loans, and you’ll have a lot of stress off your back.

Meta Title: COVID-19 Troubles: Mortgage Payments and Finding Relief

Meta Description: Missed payments during the pandemic are prevalent. Here are some useful ideas to make sure your loans are paid off, even during trying times.

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