Coronavirus Mortgage Relief Options
CARES Act Relief Options for all federally backed mortgagesA new federal law, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, puts in place two protections for homeowners with federally backed mortgages:
Other topics covered in this blog include:
Source: https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/#relief-options
- First, your lender or loan servicer may not foreclose on you for 60 days after March 18, 2020. Specifically, the CARES Act prohibits lenders and servicers from beginning a judicial or non-judicial foreclosure against you, or from finalizing a foreclosure judgment or sale, during this period of time.
- Second, if you experience financial hardship due to the coronavirus pandemic, you have a right to request a forbearance for up to 180 days. You also have the right to request an extension for up to another 180 days. You must contact your loan servicer to request this forbearance. There will be no additional fees, penalties or additional interest (beyond scheduled amounts) added to your account. You do not need to submit additional documentation to qualify other than your claim to have a pandemic-related financial hardship.
Other topics covered in this blog include:
- What are the major mortgage relief options?
- Which mortgage relief options do I qualify for?
- How do I get mortgage relief?
- What do I do once once I am receiving mortgage relief?
- How do I repay my forbearance?
- How do I watch out for scams?
- Does my utility offer protection from disconnection?
- Do renters have protection?
- Where can I get get more help?
Source: https://www.consumerfinance.gov/about-us/blog/guide-coronavirus-mortgage-relief-options/#relief-options
A Guide to COVID-19 Economic Stimulus Relief
FAQs regarding recently-signed CARES Act.
- When can I expect to receive my Economic Impact Payment?
- Do I qualify and how much will I receive?
- What steps do I need to take to receive an Economic Impact Payment?
- I receive Social Security retirement, disability, survivors, SSI, or veterans benefits. Do I automatically qualify for an Economic Impact Payment?
- How will the IRS send my payment?
- Can I provide the IRS with my bank account information?
- I’ve moved since I’ve filed my taxes. How can I update my address?
- If I still need to file my 2018 or 2019 taxes, can I still receive the Economic Impact Payment?
- I’m not normally required to file taxes. Can I still receive the Economic Impact Payment?
- I don't have a Social Security number. Can I still get an Economic Impact Payment?
- Can the government reduce or garnish my Economic Impact Payment?
- I received a message from the IRS asking for my personal information. Is this a scam?
What the CARES Act Means for Repayment of Federal Student Loans
What follows is a summary of what we currently know about the key student loan repayment provisions. Throughout, we flagged some questions about coverage and implementation to which answers are not yet readily available.
Payment Suspension
What it does: The Act suspends all payments due on certain federal loans until September 30, 2020. Specifically, this provision applies only to non-defaulted Direct Loans and FFEL loans currently owned by the Department.
Interest Waiver
What it does: The Act states that interest shall not accrue while the loan payments are suspended. Because this provision applies only to loans for which payments have been suspended, that means that this provision also applies only to Direct Loans and to FFEL loans currently owned by the Department.
Time in Suspension Counts Toward Forgiveness or Loan Rehabilitation
What it does: The Act states that each month for which a loan payment or involuntary collection was suspended under this law shall be treated as if the borrower made a payment for the purpose of any loan forgiveness program or loan rehabilitation program authorized for which the borrower would have otherwise qualified.
Credit Reporting
What it does: For credit reporting purposes, any payment that has been suspended is treated as if the borrower made a regularly scheduled payment.
Collection Suspension
What it does: The Act suspends all involuntary collection of defaulted Direct Loans and Department-owned FFEL loans until September 30, 2020. This explicitly covers non-judicial wage garnishment, tax offsets, and federal benefit offset (e.g., seizure of Social Security benefits). There is also a catch-all provision to cover other types of involuntary collection by the Department of Education.
Borrower Notification
What it does: The Act requires the Secretary of Education (the Secretary) to notify borrowers for whom payments have been suspended and interest waived, or for whom involuntary collection has ceased, within fifteen days of these changes. The notification will also inform borrowers of the option to continue making payments toward principal. Beginning August 1, 2020, the Act also requires the Secretary to give each borrower a notice at least six times, stating when the borrower’s normal payment obligations will resume and that the borrower has the option to enroll in income-driven repayment.
Loan Cancellation for Current Students
What it does: For borrowers who withdraw from their school as a result of the coronavirus crisis, the Act requires the Secretary to cancel the borrower’s Direct Loan associated with the payment period in which they withdrew.
Source: https://www.studentloanborrowerassistance.org/what-the-cares-act-means-for-repayment-of-federal-student-loans/
Payment Suspension
What it does: The Act suspends all payments due on certain federal loans until September 30, 2020. Specifically, this provision applies only to non-defaulted Direct Loans and FFEL loans currently owned by the Department.
Interest Waiver
What it does: The Act states that interest shall not accrue while the loan payments are suspended. Because this provision applies only to loans for which payments have been suspended, that means that this provision also applies only to Direct Loans and to FFEL loans currently owned by the Department.
Time in Suspension Counts Toward Forgiveness or Loan Rehabilitation
What it does: The Act states that each month for which a loan payment or involuntary collection was suspended under this law shall be treated as if the borrower made a payment for the purpose of any loan forgiveness program or loan rehabilitation program authorized for which the borrower would have otherwise qualified.
Credit Reporting
What it does: For credit reporting purposes, any payment that has been suspended is treated as if the borrower made a regularly scheduled payment.
Collection Suspension
What it does: The Act suspends all involuntary collection of defaulted Direct Loans and Department-owned FFEL loans until September 30, 2020. This explicitly covers non-judicial wage garnishment, tax offsets, and federal benefit offset (e.g., seizure of Social Security benefits). There is also a catch-all provision to cover other types of involuntary collection by the Department of Education.
Borrower Notification
What it does: The Act requires the Secretary of Education (the Secretary) to notify borrowers for whom payments have been suspended and interest waived, or for whom involuntary collection has ceased, within fifteen days of these changes. The notification will also inform borrowers of the option to continue making payments toward principal. Beginning August 1, 2020, the Act also requires the Secretary to give each borrower a notice at least six times, stating when the borrower’s normal payment obligations will resume and that the borrower has the option to enroll in income-driven repayment.
Loan Cancellation for Current Students
What it does: For borrowers who withdraw from their school as a result of the coronavirus crisis, the Act requires the Secretary to cancel the borrower’s Direct Loan associated with the payment period in which they withdrew.
Source: https://www.studentloanborrowerassistance.org/what-the-cares-act-means-for-repayment-of-federal-student-loans/