With the current state of the nation, we are surrounded by uncertainty and questions regarding not only our health and safety, but also our finances and property. As a result of COVID-19, many are facing unemployment as companies are laying off workers or even shutting down. It is only becoming more difficult for people to maintain payments, such as mortgages and rent. Assistance programs are being developed to provide aid to those whose incomes have been disrupted by the disease. These are meant to provide universal protection and allow for the least amount of disruption to people’s lives. Recently, the Federal Government passed the Coronavirus Aid, Relief, and Economic Security Act (CARES ACT), which is the largest government relief package in history. The $2.2 trillion measure provides financial assistance to the people, hospitals, small businesses, and other industries in the form of money, supplies, and services. Adults will received payments of up to $1,200, and children will receive $500 as a way to make up for some of the lost income during this time, if qualified.
During times of financial trouble, one of the biggest questions on everyone’s mind is “Will I lose my home?” The CARES ACT provides relief to homeowners and tenants by ordering a 60 day halt for home foreclosures and evictions. During this time, the Federal Housing Finance Agency (FHFA), Housing and Urban Development (HUD), and United States Department of Agriculture (USDA) will not be able to foreclose or evict during this time period. In addition, those facing home mortgage payments will have some flexibility. The CARES ACT allows for up to 90 days of loan forbearance. Forbearance provides relief in times of economic hardship by suspending mortgage payments for up to 12 months. The White House is also encouraging those affected to contact their loan providers directly to make adjustments and inquire about forbearance on their loans. Companies are taking their own precautions and may be able to provide further assistance. This was announced by Freddie Mac and Fannie Mae which account for about half of mortgages throughout the United States.
While steps are being taken on the federal level, states across the nation are creating their own ways to ensure financial safety for their citizens. Locally, Governor Newsom has taken action, signing an executive order that halts all foreclosures and evictions in the state of California until at least May 31, prior to the announcement of the CARES ACT. In addition, he has also asked that the state utilities commission oversees that companies are doing all that they can to prevent any disruptions to utilities, such as electricity, water, etc. While the order protects Californians from losing their residence, it is important to note that it does not protect from rent payments. Unless your landlord has stated otherwise, landlords are still entitled to collect rent from tenants, and tenants are still required to make payments.
Alongside Gov. Newsom’s order and the federal issue of the CARES ACT, other institutions are making adjustments to provide assistance to Californians. Many banks, including Wells Fargo, U.S. Bank, CitiBank, and J.P. Morgan Chase, and other financial institutions are providing relief to homeowners who are struggling to make mortgage payments. If eligible, homeowners may be able to defer mortgage payments for at least three months and will not be penalized for late payments. In addition, banks are taking several other measures to eliminate costs. This includes waiving fees and deferring credit card payments.
If you are worried about the state of your payments and fear future foreclosure, know that you are not alone during this time. The number one step you should take is to be in contact with your providers to discuss what can be done. While both the federal and state governments are continuing efforts to make this time easier, your providers may be able to provide additional assistance, such as forbearance. Be sure to keep up with any legislative changes that are announced that may provide you with more assistance and help make this difficult time easier for you.
HOW CAN WE HELP?
Your number one priority during this time should be keeping your family and yourself safe. If you are in need of financial assistance, you can schedule a PHONE CONSULTATION with local Sacramento Bankruptcy Lawyer Pauldeep Bains. This way, you do not need to leave your home but can still seek the legal options that you potentially need from a knowledgeable bankruptcy attorney. Please call 916-800-7690 immediately and schedule your no-hassle PHONE consultation with Mr. Bains to discuss your personal situation.
We help clients in the following areas: Sacramento, Elk Grove, South Sacramento, West Sacramento, Natomas, Citrus Heights, Antelope, Fair Oaks, Gold River, Rancho Cordova, Roseville, Rocklin, Lincoln, Wheatland, Yuba City, Marysville, Woodland, Davis, and Lodi.
