CARES act: Mortgage Relief 

Part of the CARES act enacted by our federal government contains a provision that requires some lenders and encourages others to give some relief to homeowners struggling financially and fear not being able to keep up with house payments during these uncertain times.

You have probably heard at least a little about these provisions. One is called Forbearance and the other is called Deferral. Forbearance simply means that you and the lender enter into an agreement to not have to make a house payment for an agreed upon amount of time. Once your finances are back in order you start making those payments again AND you have to make up all the missed payments. They may arrange some kind of amortization of that pastdue but it won’t likely be over a long period of time.

Deferral on the other hand gives you the same option of stopping payments for a preset amount of time. The difference is at the end of that time you just start making your payments again. The payments you missed will be tacked on to the end of the loan. So, if you had say, 10 years left on your amortized loan at the end of those 10 years you would still have those 6 months of missed payments to be paid. Thus, they were deferred to the end of the loan.

It is important that if anyone elects to look into either of these provisions, they discuss it with their lender BEFORE they miss a payment. Once you have a late payment the lender MAY still report it to your credit report as late. If you make arrangements before you miss a payment they are not supposed to report this as a negative on your credit report

About the current market

Most of you are aware that our new office downtown is on lockdown and has been since this virus raised made its presence known. Steve and I are working from home but are still here and can help you with any real estate needs or questions you might have.

The market is still surprisingly active. Not quite as busy as normal for this time of year but given the economic climate it is still going on. New listings and sales come through every day. We are operating mostly virtually and have learned we can accomplish quite a bit this way. Between photos, virtual tours and 3 D Tours you can get a pretty good idea of what a house is like. We can certainly show you in person too by following safe distance protocols and safe procedures.

client truck

One other thing, don’t forget that the truck is here for your use. Some of you have a little more time for projects at the moment and if the truck can help you with any kind of hauling she is here for your use. There is not cost for this, only replacing whatever gas you use. Give us a call we’d be happy to drop it by your house and pick it up when you are done.