As workers around Connecticut face the uncertainty of not receiving their paychecks due to businesses closing abruptly -- some on a temporary basis , others permanently -- or a reduction in work hours to prevent the spread of COVID-19, many are left wondering: how will I make rent or mortgage payments?
The economic hardships brought on by this global outbreak is a reality. Seeing this, there are a flurry of measures by officials in the tri-state area, as well as the federal government, that have been set into place -- or are in the works -- to protect renters and homeowners.
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CONNECTICUT
Connecticut agencies have taken some steps to help homeowners and renters impacted by the coronavirus pandemic.
- There shall be an immediate stay of all issued executions on evictions and ejectments through May 1, 2020.
- The Connecticut judicial branch rescheduled all foreclosure sales scheduled to occur in April or May to June 6
- The judgment in ANY foreclosure action in which the Court set a “law day” to run on any date in April or May is hereby amended with the first law day now set for June 2, 2020
- The Connecticut Housing Finance Authority is available via telephone or email to answer residents' questions.
- The CFHA said borrowers worried about making their mortgage payments should contact their loan servicer immediately to discuss options or call (860) 533-9208 or email ServicingRequests@chfa.org for assistance
- The Connecticut Coalition to End Homelessness has a resource guide available to find help locally and nationally. If you need any assistance, you are encouraged to call 2-1-1.
- The Connecticut Fair Housing Center wants to hear from you if you have any questions or concerns about fair housing protection, or believe you have experienced discrimination in housing, to call the Center at (860) 247-4400 or (888) 247-4401 (toll free), or at info@ctfairhousing.org
FEDERAL GOVERNMENT
Mortgage buyers Fannie Mae and Freddie Mac announced Wednesday that they will suspend foreclosure and evictions of borrowers in single family homes owned by their companies.
Under Fannie Mae's guidelines for single-family mortgages:
- Homeowners who are adversely impacted by this national emergency may request mortgage assistance by contacting their mortgage servicer
- Foreclosure sales and evictions of borrowers are suspended for 60 days
- Homeowners impacted by this national emergency are eligible for a forbearance plan to reduce or suspend their mortgage payments for up to 12 months
- Credit bureau reporting of past due payments of borrowers in a forbearance plan as a result of hardships attributable to this national emergency is suspended
- Homeowners in a forbearance plan will not incur late fees
- After forbearance, a servicer must work with the borrower on a permanent plan to help maintain or reduce monthly payment amounts as necessary, including a loan modification
Meanwhile, Freddie Mac’s mortgage relief options for borrowers impacted by COVID-19 include:
- Ensuring payment relief by providing borrowers forbearance for up to 12 months;
- Waiving assessments of penalties or late fees against borrowers;
- Suspending the reporting of delinquency related to forbearance, repayment or trial plans to credit bureaus; and
- Allowing Servicers to offer borrowers additional loss mitigation options that are typically only enacted to address natural disasters. This includes loan modifications that give servicers options to provide payment relief or keep the payment the same post the forbearance period.
The action, ordered by Fannie and Freddie’s federal regulator, is among many efforts nationwide to protect those affected by the coronavirus pandemic. The companies have been under the control of the federal government since the 2008-09 financial crisis.
In addition, the U.S. Department of Housing and Urban Development similarly suspended foreclosures and evictions for mortgages insured by the Federal Housing Administration.
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