What to do if you can’t pay the rent or mortgage during the quarantine

When will the payment deadline for the rent — usually it’s today, April 1, many Americans will be faced with the harsh reality of the pandemic coronavirus, a well-known real estate expert Barbara Corcoran. What to do if you are not able to pay the rent or mortgage during the quarantine, tells Fox News.

Что делать, если вам нечем платить за аренду или ипотеку во время карантина

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“Many are going to call your landlord or just ignore the need to pay, said Corcoran. And I think April 1 will be the first day when people do agree with the fact how everything is different now”.

According to the Federal reserve Bank of St. Louis, as millions of Americans are out of work, a virus outbreak can lead to the 47 million jobs lost and the unemployment rate may reach 32% in the second quarter.

However, according to Corcoran, there are steps you should take if you can’t make payments. The first thing to do if you have no money is to stop paying rent.

“You will have a much stronger position in negotiations, if you can keep the money, instead to pay as much as you can, and then beg for forgiveness” she said.

The next step is to call your landlord before you learn that you have a real problem.

“This is really the case when the owner wants to hear from you and offer something reasonable that you really can afford,” says Corcoran.

Meanwhile, several large cities, including new York, Boston, Los Angeles, San Francisco and St. Louis has temporarily banned the eviction. But in recent days, the tenants across the country in favor of a General strike and non-payment of rent.

Corcoran said that although it is unfair to landlords, group motion is very strong, and should be treated seriously.

The magazine USA Today said on important issues concerning rent during the quarantine.

Evict me if I don’t pay rent?

Maybe not. The Federal law on assistance in connection with the coronavirus includes a moratorium on all evictions from buildings financed with Federal mortgages, for example, those that are funded by Fannie Mae, Freddie Mac and the Department of housing and urban development. After excluding mortgage and private buildings, mortgages redeemed, the moratorium covers about 40% of all single-family homes and half of apartment buildings, said Shamus Roller, Executive Director of the national housing law Project.

What if my house does not apply to federally funded?

At least 34 States and dozens of cities have been introduced more wide moratorium on evictions, which apply to all rented apartments, and many of them last from 30 to 90 days. Thus, the majority of tenants will be protected. In some States, the eviction can not simply be executed because the courts do not sit. For example, in Virginia the case of eviction suspended until the end of April, but homeowners can file lawsuits to begin the process. If the crisis persists and in may, the suspension may be continued, says Joe cooking., counsel for the tenant of a property in Baskin, Jackson and Lasso in falls Church, Virginia.

But 12 States have not taken any steps to stop the eviction, with the result that some tenants become vulnerable. The roller calls for a national moratorium on evictions.

Do I have to prove that lost income due to the coronavirus?

Federal law does not require this, but require some States, says Roller. Government of Arizona, for example, insist that tenants showed a “significant loss of income” due to the outbreak of coronavirus.

Does the moratorium that I don’t have to pay for this month?

No, it just means that the rent deferred. The moratorium will lead to several months of late payments when the emergency is over. Some protection groups urge tenants to cancel the lease payments during the crisis. When the crisis ends, said Roller, landlords and tenants come to an agreement, which may include full or reduced pay and some extra help from the government.

If I don’t pay rent for April, will it affect my credit rating?

According to Roller, your credit rating may be affected if the court ultimately will stand against you with an eviction notice. In some cities the case of eviction can be processed, but police departments do not perform them during an emergency, he says. Thus, your credit rating may be affected, even if you are evicted.

Whether landlords exemption from mortgage payments?

Federal aid provides for the refusal of payments on mortgage loans for a period of up to one year, but only Federal loans. Some States and banks have also provided benefits for other types of mortgages. Sooner or later, the borrower will have to develop a repayment plan or loan modification with mortgage service Agency.

However, some States provide a moratorium to tenants, but not owners, potentially forcing owners to pay their mortgages, utilities, taxes and other expenses, even if they have lower rental income.

What to do with the mortgage payments

Many lenders allow borrowers to skip payments without charging a fee for late or do not think such payments are overdue, adds Fox News.

Since many American households are trying to cope with the financial challenges they faced in the result of the spread of the coronavirus, some may worry about paying the mortgage in April.

As a rule, mortgage payments should be made in the first day of the month, that is Wednesday, 1 April. But due to the fact that many people are out of work or working fewer hours to make this payment in April, may not be so simple.

If you find yourself in a situation where you can’t afford to pay the mortgage in the first place, contact your lender or service provider to discuss the financial situation you are in.

“The best advice is to contact the creditors and inform them of your situation, — said the chief financial analyst Bankrate.com Greg McBride. — There are many options if you are proactive and go to the contact. The options are not many, if you just keep silent and don’t pay, but they still keep track of it in two months.”

Phone number and mailing address of your mortgage consultant should be specified in the monthly mortgage report.

McBride noted that mortgage and car payments, usually the two biggest components of the average household budget — may also apply to two classes of creditors willing to work with you on financial decision.

Mortgage payments can also be temporarily deferred, although interest will accrue on the principal balance.

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