How to get mortgage payments delayed
Borrowers’ first step is to ask for help
Precious Hunter is suddenly worried about paying her mortgage this month.
The reason: the spreading coronavirus.
The West Haven, Connecticut, resident has two children who were forced to stay home after the pandemic closed their school. That’s caused an abrupt rise in her monthly expenses for food and the internet, she says.
“These unexpected expenses have been dumped on us,” said the 48-yearold, who works as a senior documentation quality specialist at Yale New Haven Health.
Hunter reached out to Wells Fargo on Twitter, asking for help with her monthly mortgage payment of $1,350. A representative reached out and said they escalated her case this week. Hunter is still waiting to hear back, she says.
“It’s scary. I’m trying to do the best that I can. I’m just looking for a breather, even for a month, where I can use that to provide needed necessities for my family,” she said.
As the number of coronavirus cases in the U.S. rises, more Americans could see their expenses rise, their jobs disappear or their income fall as businesses are forced to cut hours or close. Many people are struggling to keep up with bills, including their monthly mortgage payment, while they wait to return to work.
Experts have advice: Contact your mortgage servicer as soon as possible if you’re worried about falling behind on payments.
“The most important thing a homeowner can do after missing a mortgage payment is pick up the phone,” said Austin Kilgore, director of digital lending at Javelin, a research-based advisory firm. “The servicers can’t do anything for you unless you’re communicating with them.”
For many Americans, housing costs are their largest expense. In the U.S., 62% of homeowners have a mortgage, according to Lendingtree. The median mortgage payment across the U.S. is about $1,100, or less than 15% of a homeowner’s median monthly income.
President Donald Trump said Wednesday that the Department of Housing and Urban Development will suspend “all foreclosures and evictions” through the end of April. The government’s action is aimed at preventing a new wave of foreclosures. All single-family borrowers with a Fhainsured mortgage are eligible.
Those not facing foreclosure but still financially strained have other options for relief on Fha-insured mortgages. Forbearance, for example, typically means temporarily suspending or reducing mortgage payments.
A broad mortgage forbearance could allow homeowners to redirect the funds normally reserved for their mortgage payment toward other necessities until they can return to work.
The terms of and process for applying for a mortgage forbearance vary by lender. Borrowers can reach out to their lender to discuss possible terms. The process can be time-consuming and complex, requiring supporting documents and processing by the lender.
“Call up your lender if you have a particular hardship,” said Tendayi Kapfidze, chief economist for Lendingtree. “There are generally a set of requirements set by Fannie Mae and Freddie Mac for mortgage forbearances if it’s a government-guaranteed mortgage. Depending on the event, like a job loss, you may have to show documentation upfront.”
The vast majority of mortgage borrowers have loans that fall under the guidelines of Fannie Mae, Freddie Mac and the U.S. Department of Housing and Urban Development. Most homeowners will have the same access to forbearances and other assistance, regardless of what company services the loan, Kilgore says.
Here’s a rundown of how various mortgage lenders are taking action:
Jpmorgan Chase: Representatives from the bank said help is available for
Chase mortgage customers who have been affected by the virus. Customers can seek help by visiting the bank website.
Wells Fargo: Available assistance includes fee waivers, payment deferrals and other expanded assistance for credit card, auto, mortgage, smallbusiness and personal lending customers. Customers can call 1-800-2199739 to speak with a specialist to discuss options.
Bank of America: Borrowers can request deferring mortgage payments, placing them at the end of the loan. The bank has also paused foreclosure sales, evictions and repossessions. Clients facing financial hardships should visit the company’s client resources web pages.
Oceanfirst: This regional bank, which serves customers in New Jersey and the metro areas around Philadelphia and New York City, will defer some loan payments for a variety of businesses and individuals. Restaurants that have to shut down in the wake of the coronavirus outbreak can defer their payments, both principal and interest, for 90 days. They could also seek up to $200,000 in additional financing.
Borrowers who are emergency responders or who work in the health care field can ask that payments on their mortgages or other consumer loans be deferred for 90 days. The deferral would apply to both principal and interest. Other customers affected by the virus may also be able to benefit from the relief program, the bank says.
Contributing: Charisse Jones, USA TODAY