Many people are out of work. Folks who were already living paycheck to paycheck. And that financial blow has put our housing at risk as rent and mortgages come due. Luckily, during this time you have some protections against late fees, evictions, and on loan repayments with some institutions.
For private housing, there is a moratorium on evictions until the end of June. You are still responsible for paying back this rent. There is not yet an official plan for how it will be paid back but Sacramento is discussing it.
You mortgage or rent payments may be reduced if not eliminated for government backed housing or loans. If you have any questions about housing, you should reach out to 2-1-1 or call the Fannie Mae Disaster Response Network at 1-877-542-9723.
You may instead be able to request "forbearance" which adds the compounding interest onto the back of your loan. You still owe the money but won't have to pay for now.
Here are three resources available to help, and don't forget to call your bank or landlord and ask what can be done to help in advance.
- The CARES Act relieves pressure on renters and homeowners. [Read more on the CARE Act Eviction Moratorium from the Urban Institute]. It reduces or suspends monthly mortgage payments through forbearance (Def: the action of refraining from exercising a legal right, especially enforcing the payment of a debt), places a temporary moratorium on property foreclosure sales and evictions, and provides additional loan modification options after the completion of a forbearance. To seek relief, borrowers should first contact their loan servicer to review and access these options.
- Relief from eviction for renters is also available in properties with federally backed mortgage loans, including Fannie Mae, Freddie Mac and the Federal Housing Administration (FHA) for a period of 120 days beginning on March 27, 2020.
- Free housing counseling assistance is also available from Fannie Mae’s Disaster Response Network at 1-877-542-9723
The charity "Modest Needs" offers a one time $1,000 hardship grant for housing expenses.
The "Salvation Army" offers rent and bill assistance.
Thanks for your tips, Allison Daniels!
Automakers have rolled out new benefits to ease the financial strain on car owners and buyers. Some have even gotten creative! Here’s a list of automakers and what they’re doing to help:
- General Motors (Chevrolet, Buick, GMC, and Cadillac) - GM Financial is open to change payment arrangements and Onstar Crisis Assist and in-vehicle data will be available for WiFi-equipped owners.
- Hyundai - revived its Assurance Job Loss Protection Program providing six months of car payments to new buyers if they lose their job involuntarily and 90 days of payment deferral on select new cars
- Ford - allowing delay of payments to provide financial relief to car owners financed through Ford as well as deferring new car payments up to 90 days
- Nissan - Nissan’s financing arm will allow current retail and lease customers to defer payments and delayed payments for 90 days for new buyers