Many homeowners these days get a hiatus from mortgage payments, but the devil can be in the details. Connecticut’s Rosanne Stoddard tells CNBC she was quite shocked when she called Bank of America about their $ 2,200 monthly payments. She was granted a three-month pandemic exemption, she says, but the remaining amount would then be due immediately. That’s $ 8,800 Stoddard can’t afford; she calls it “misleading to say the least”. Others (like this Twitter user) say they have had similar BofA experiences. For its part, the BofA says it can grant monthly deferrals on loans owned by the bank, but on loans owned by outside investors, the deferral is only three months – then the customer may have to pay. For more:
- Lenders are also under pressure. What if they stop pouring money into pension funds, hedge funds, and elsewhere when mortgage payments fall behind? “If Congress and regulators fail to intervene – and quickly – some mortgage servants, banks and lenders will have to add capital reserves that are insufficient to cover these payments over the long term,” says Curbed. “Some will have to shut down completely, at least temporarily.”
- Politico agrees, stating that Congress’s $ 2 trillion package does not include any mortgage relief. Now mortgage industry lobbyists are putting pressure on the Trump administration, and Treasury Secretary Steve Mnuchin says he plans to address the problem.
- In the meantime, how do people make mortgage payments? Business Insider’s advice (other than calling your lender) is to resort to home equity or try to refinance with a small business.
- The Washington Post advises mortgage holders to visit aba.com and search “Industry is Responding to Coronavirus” to see what help is available. Or go to americascreditunions.org to see what credit unions are offering.
(Read more mortgage stories.)