The coronavirus pandemic has brought on a lot of uncertainties in people’s lives. Aside from fears and concerns about public health issues, finances has been the biggest struggle for most. In Colorado, the cost of mortgage and rent is among the main concerns for residents. It is no secret that mortgage rates in the state are among the highest in the country.
With many people losing their jobs or being furloughed, being able to afford mortgage payments is a true cause for concern. In this guide, you will learn some tips from Brian Boals and his team of realtors on the state of mortgage and rent in Colorado. You will also get some tips on how to cope with your mortgage payments during this challenging time.
Colorado Mortgage in the Time of Coronavirus
Dealing with mortgage issues during a crisis. (Image Source: Unsplash)
The CARES Act was signed into law in late March. It is designed to provide homeowners protection against the impact of the coronavirus pandemic on the economy. In particular, it allows relief for mortgage borrowers of up to one year of not making mortgage payments.
This is to allow homeowners assistance during the time of crisis, especially those who have lost their jobs. In addition to getting a relief on mortgage payments, they can also be protected against foreclosures.
This is a move done by the government to ensure that residents can cope with the financial difficulties related to the coronavirus situation. But if you are interested in enjoying this benefit, make sure you are qualified.
The CARES Act offers relief and protection for those who have a federally-backed mortgage loan. This means that only borrowers who have a VA, FHA, Fannie Mae and Freddie Mac loan can qualify for the mortgage forbearance.
If you do have a federally-backed loan, get in touch with your mortgage provider. Communicate your need for forbearance as it is not something that applies automatically. Do not simply assume that you qualify for the relief. Once you have confirmed it with your mortgage provider, you will get a temporary break over your mortgage payments.
This benefit is awarded not only to Colorado homeowners but to those all over the US. At the same time, local policy makers also encourage those who can afford to pay rent or mortgage to continue doing so. This step will ensure that the rental housing industry or real estate market will not crumble in this tough economy. Those who can afford to make mortgage payments are encouraged to do so in order to prioritize relief to those in dire financial straits.
If you are living in the best neighborhoods in Colorado Springs and your income is not largely affected by the pandemic, then you might be better off continuing making payments. This will also ensure that your payments won’t pile up later.
How to Handle Mortgage Payments and Rent After Coronavirus
While there are policies in place that enable you to get forbearance from your mortgage or rent payments, you have to look ahead.
What will happen to your mortgage payments and rent when the pandemic is over? Will you be in deeper financial trouble once the public health crisis is lifted?
These are warranted concerns and it is important that you know what to do when that happens in order for you to manage your finances wisely.
Negotiate with your mortgage provider about an affordable payment plan. The biggest concern for a lot of homeowners is that they would have to pay a lump sum once the relief period is lifted. If this happens, many mortgage borrowers will be unable to afford such payments (especially following job loss and other employment issues). One thing you can do about it is to negotiate a payment plan. For instance, your waived mortgage payments can be divided into several monthly installments. This will make payments more affordable and easier to manage (instead of paying one large sum).
Take advantage of coronavirus stimulus checks. As part of government relief efforts, a stimulus package is provided to all qualified residents in Colorado. The stimulus check is valued at $1,200. This isn’t much to most people’s standards, especially with the cost of living in Colorado. However, the government insists that it will help cover any rent or bills in the meantime.
Mortgage relief for Colorado residents during the pandemic. (Image Source: Unsplash)
If you can afford it, don’t stop paying your mortgage! This is very important since you do not want to burden yourself with mortgage payments that have piled up. Also, do not assume that your mortgage company has given you forbearance. Communicate directly with them about your situation. If you do not do this, you could be charged with late fees and penalties. It is always a good practice to keep up with your payments while you can still afford to do so.
Learn to stretch your budget. As the crisis continues to loom over the residents of Colorado and the rest of the world, there is no better time than now to practice budgeting. With limited resources and so many bills to pay, including mortgage and rent, this is a practical thing to do. Make sure to plan ahead – this crisis could be over sooner than anticipated. When that happens, you will be out on your own to face the financial responsibilities of paying mortgage or rent without mortgage relief to save you.
Talk to Brian Boals About Your Mortgage Concerns
Are you worried about the possibility of losing your home to foreclosure when the pandemic is over? Worry no more – Brian Boals of Remax real estate group in Colorado Springs is here to help! You can talk to our lending partners about your mortgage relief and forbearance. If you need any assistance, do not hesitate to call us at (719) 495-9955. With our expertise on the Colorado real estate market and knowledge of the industry in general, we can answer any questions you might have in these uncertain times.
If you have any other concerns about your mortgage status, feel free to reach out to us. We will be sure to address your concerns in a prompt manner to rid you of any anxiety and stress!