The $2 trillion coronavirus stimulus package has passed. It includes direct payments and unemployment benefits boost to eligible Americans. If you haven’t read the details on this, you can read from here.
Also, the Internal Revenue Service postponed the deadline for tax payment. The deadline for 2019 tax payments is now July 15, not April 15. But you still have to file your taxes before the April 15 deadline.
While the stimulus bill covers a wide variety of Americans, there are also certain things that will benefit homeowners. The federal stimulus program allows homeowners who pay a mortgage to request mortgage loan forbearance. Initially, it was thought that only the forbearance could be requested for federally backed loans such as the FHA and VA Loans. Now that the Coronavirus Aid, Relief and Economic Security Act (CARES) passed, it has been cleared out.
Regardless of the type and delinquency of the mortgage you have, you can now suspend your payments upon request. During the 180 days, you won’t be subject to any late penalties or interests.
There is also a similar situation that applies to borrowers of multifamily mortgages. If you own a multifamily property and did not have any late payments as of February 1st, you can request a forbearance as well.
The initial duration of the forbearance is 180 days. If found necessary, an additional 180 days might be added to the initial forbearance. As of now, the time will tell whether you will be able to extend beyond the initial forbearance. The mortgage industry is expected to get hit quite a bit by the CARES Act as far as the benefits homeowners get. However, the $2 trillion stimulus plan also contains loans totaling $500 billion.
Since a quarter of the $2 trillion stimulus plan is loans for corporations and small to mid-sized businesses, things should stay at a balanced level.
With the federal stimulus program for homeowners, you will be able to postpone your mortgage payments for 180 days. To do this, you must contact your mortgage lender and request the forbearance. This can be in the form of a verbal or written request. You must do it by contacting your mortgage lender, so you do not need any documents from the federal government.