Coronavirus Mortgage Relief: What You Need To Know

Coronavirus Mortgage Relief: What You Need To Know

By: Leanne Potts

Published: April 7, 2020

It’s a confusing time, but lenders are putting remedies, like forbearance, in place to help homeowners.

Mortgage lenders, and the federal agencies that regulate lenders, are putting coronavirus mortgage relief measures in place to ensure homeowners have options if they’re unable to make payments.
Your first stop in the face of financial hardship is your lender or bank.
Just keep in mind lenders are working to figure out and implement the new mortgage relief polices outlined by the regulatory agencies. So you might read one thing from the FHFA, a federal regulator, but your bank might be doing something else.
In addition, due to the number of homeowners affected by the pandemic, lenders are dealing with a crush of calls and online queries. Be patient, persistent, and prepared to spend time on hold.
Here are the resources you need now.

Your Mortgage

Federally Backed Mortgages
If you have a mortgage backed by Federal Housing Administration (FHA), Veteran’s Administration (VA), United States Department of Agriculture (USDA), Fannie Mae, or Freddie Mac, your loan servicer must offer you deferred or reduced mortgage payment options – called forbearance — for up to six months. This means you don’t have to pay your mortgage and you won’t be charged late fees, penalties, or interest while you can’t pay.
Loan servicers for FHA, Freddie, and Fannie must provide an additional six months of forbearance if you request it.
Not sure who backs your own loan? Fannie Mae and Freddie Mac have loan look-up sites where you can find out who owns it, and how to get in touch with them.

In addition, here are direct links to some lenders and banks’ Covid-19 resources:

• Ally
• BNC National Bank
• Bank of America
• Better.com
• Caliber Home Loans
• Capital One
• Chase
• Citibank
• Navy Federal
• PHH
• PNC
• Quicken Loans
• Truist (formerly BB&T and Suntrust)
• U.S. Bank
• Wells Fargo

Mortgages Not Federally Backed
If your mortgage is one of the 5 million in the United States not backed by a federal entity, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which includes a coronavirus mortgage relief mandate, doesn’t apply. But regulators have encouraged those lenders to work with borrowers who can’t pay their mortgages, and most banks and other lenders are suspending mortgage payments or offering forbearance.
The level of relief you get will depend on who owns your loan. Contact your lender to find out what’s available.

Regardless of the type of loan you have, you must apply for coronavirus mortgage relief through their mortgage servicer. That’s the entity that collects your monthly payments and decides how long the assistance will last. When you reach your mortgage servicer, you’ll need to explain your situation and provide information about your income, expenses, and assets.
TIP: If you’re an at-risk homeowner, this downloadable PDF will help you understand the sources you can approach for help.

Foreclosure and Evictions

Federal officials have imposed a nationwide halt to foreclosures and evictions for more than 36 million Americans with home mortgages backed by the FHA, Fannie Mae, and Freddie Mac.
The moratorium only affects borrowers with mortgages backed by Fannie Mae, Freddie Mac, FHA, VA, and RHS (Rural Housing Service loans through the USDA). This doesn’t apply to the roughly 35% of mortgages held in bank portfolios and private label securities. But some individual lenders are offering relief.
Some cities, counties, and states, including Delaware, Indiana, Kansas, Louisiana, New Hampshire, North Carolina and Texas, have placed a moratorium on foreclosures. Check with your city, county, and state governments. Find state-by-state tallies online.

Housing Counselors

Another tool in your relief toolbox are housing counselors. Counselors can provide independent advice on buying a home, renting, defaults, foreclosures, and credit issues. The U.S. Department of Housing and Urban Development’s look-up tool lets you can find counselors in your state.

Your Credit

The CARES Act forbids lenders from dinging your credit score for missed payments on federally backed mortgages and student loans during your forbearance period. The federal government is also encouraging private lenders to suspend reporting late payments on eligible mortgages. The Consumer Financial Protection Bureau has more advice about protecting your credit.
To keep close tabs on your credit, you can now obtain a free credit report from each of the three credit bureaus, Experian, Equifax, and TransUnion, every week for the next year through April 20, 2020. The companies ratcheted up their once-a-year allowance to help consumers “protect their financial health during the sudden and unprecedented hardship caused by COVID-19.”
Get all three reports in one spot: annualcreditreport.com.

Your Student Loan

The CARES Act includes immediate relief for those who can’t make their monthly payments on federally held loans due to coronavirus. All loan payments (both principal and interest) are suspended through Sept. 30, 2020, with no penalty. You don’t need to apply for this program or contact your lender. It’s automatic.

If you keep making payments, they’ll be applied entirely toward the principal. These suspended payments will count towards any student loan forgiveness already in effect.

Here’s a list of servicers — and their phone numbers — for loans backed by the U.S. Department of Education.

Some loans under the Federal Family Education Loan (FFEL) program and some Perkins Loans not owned by the Department of Education aren’t eligible for suspended payments. Nor are private student loans owned by banks, credit unions, schools, or other private entities. If you can’t make payments, contact your loan servicer to find out what options are available. Many are offering ways, like forbearance, to postpone payments.

Not sure who your servicer is? Look on your most recent statement and contact the servicer immediately.
If your student loan is already in default, the relief act immediately suspends wage garnishments or tax refund deductions. They’ll resume after the suspension ends.
Find out more about student loan relief at the Consumer Financial Protection Bureau.

Your Taxes

The IRS has pushed back the deadline for filing and payment of federal taxes to July 15, 2020. Many states are following suit. Check with your state tax agency, or see this list from the American Institute of CPAs for details on deadlines.
Related: Tips to Get Filing Ready for (Delayed) Tax Deadline

Your Real Estate Transaction

If you’re going to be buying or selling a home in the near future, find out if your county recording office can complete the deal online.
In addition, more than half of states, many under emergency state directive, allow for remote online notarization of documents. This makes it safe and easy to complete real estate transactions under social distancing orders. The number of states allowing remote notarization could grow as pandemic legislation expands.

Your Appraisal

Fannie Mae and Freddie Mac have provided detailed appraisal alternative guidelines, so homeowners and appraisers can practice social distancing on Freddie and Fannie loans through May 17, 2020.
FHA, VA, and RHS are also allowing variations on the usual appraisal protocol. Check with your servicer for details.

Look Out For Scams

Fear breeds scams. And scammers are out in full force during the pandemic. Beware of third parties offering mortgage assistance and other help. Seek help from your lender directly.
For information on circulating scams, and guidance on identifying them, visit the Federal Trade Commission website.
With additional reporting by Christina Hoffmann

How to Disinfect Your Home in the Time of Coronavirus

How to Disinfect Your Home in the Time of Coronavirus

By: Christina Hoffmann

Published: March 17, 2020

A bleach solution or rubbing alcohol is your best bet for keeping your home sanitized.

There’s everyday clean, guest clean, and then there’s COVID-19 clean.
To get down the absolute nitty gritty on how to disinfect your home, you’ll want your big guns: bleach, rubbing alcohol, and hot water.

The Best Disinfectants

For your high-touch surfaces, the Centers for Disease Control recommends a bleach solution diluted with water, or a 70% alcohol solution.
Follow this bleach recipe: 5 tablespoons (1/3 cup) bleach per gallon of water, or 4 teaspoons of bleach per quart of water.
Make sure to properly ventilate when disinfecting with bleach.
And check to see if your bleach has expired. Who knew it could? After about 9 months to a year, and if it smells less bleachy, it’s lost its disinfecting power. Time for a new jug.
Tip: Don’t mix bleach with anything other than water; otherwise, it could set off a dangerous chemical reaction. For instance, bleach + alcohol is a deadly combo.
How to disinfect your home if you don’t have bleach? Regular old rubbing alcohol (isopropyl alcohol or ethyl alcohol) works, so long as it’s at least 70% alcohol, according to the CDC. The alcohol concentration will be listed on the bottle. Rubbing alcohol you buy should already be diluted, unlike bleach.

Is There a Such a Thing as Too Much Disinfectant?

According to an EPA fact sheet, studies have found that using some disinfectant products can cause germs to become resistant.
The EPA has issued a list of disinfectants on the market that it believes are effective in killing COVID-19. Look for the EPA registration number on the product and check it against this list to ensure you have a match.
Erica Marie Hartman, an environmental microbiologist at Northwestern University in Evanston, Ill., whose research focuses on resistance, confirms soap, bleach, and alcohol are your best bets.
What about the various disinfecting wipes on the market (at least if you can find them)? Hartman says the active ingredient in many of those is an ammonium compound, which could become resistant to viruses over time.

Surfaces That Need Your Attention

With your preferred disinfectant, wipe down high-touch surfaces like doorknobs, light switches, tables, remotes, banisters, toilets, sinks, and faucets daily or more often, if someone in your home is sick.
Contact time is another key aspect of surface sanitizing. “Disinfection isn’t instantaneous,” says Hartman. [For a bleach solution], you want to leave it on the surface for 10 minutes before wiping it off. ”
By the way, new research from scientists at the National Institutes of Health, among other agencies, shows that at least some coronavirus can live for up to 24 hours on cardboard and up to three days on plastic and stainless steel.
But a report in “The Washington Post” notes that the most likely period for infection from the virus on surfaces is in the first 10 minutes to one or two hours.

Not All Floors Can Handle Bleach

For your nonporous floors, like those in the bathroom, the CDC recommends mopping with the bleach solution.
Avoid bleach on hardwood and other porous floors because of staining. Instead, use a disinfecting wet mop cloth without bleach.

Cleaning Isn’t Disinfecting

From the you-might-be-surprised files: Disinfecting with bleach isn’t actually cleaning. If you also need to clean your countertops of dirt and grime, do that first with soap and water. Then use the bleach solution or rubbing alcohol to combat the virus.

Killing Microbes on Clothes

Most washing machines today do a bang-up job on dirty clothes with cold water, which is best for energy savings. But, and especially if you have a sick person in your house, the hot-water setting followed by a high-heat dry for about a ½ hour to 45 minutes is best for virus eradication.
Don’t forget about your laundry hamper. Wipe it down like you would other surfaces. You can also use a reusable liner bag, which you can launder with the clothes.

What If I’m Selling My House, and Inviting More Germs In?

How to disinfect your home when it’s for sale? Virtual showings and tours are the ideal, and your agent can set those up.
However, if there’s a need to have someone come in, talk to your agent who will work with you to establish a hygienic protocol, including requiring visitors to wash hands with soap and water or use hand sanitizer when they arrive, and to remove shoes or wear booties before entering. Removing shoes not only reduces dirt coming in, but potentially germs.
In addition, many agents are eliminating open houses.
After any showings, practice your surface wipe-down routine.
Finally, when you work with disinfectants, practice some self care. “Alcohol and bleach can be very aggressive on your skin, so wearing rubber gloves can help protect your hands,” Hartman says. 
Related: 9 Cleaning Tasks That Homeowners Tend to Overlook

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10 Tricks for Hosting an Open House That Make Buyers Say “OMG, Wow!”

10 Tricks for Hosting an Open House That Make Buyers Say “OMG, Wow!”

By: HouseLogic

Here’s what you can do to get your home ready for its big reveal.

Few words get home buyers more excited than these two: open house.
An open house is their opportunity to give your house a whirl. To wiggle the light switches. To admire the crown molding. To, y’know, awkwardly ask to use the bathroom. (Which, by the way, savvy buyers will totally do — because they’ll want to test how the water pressure holds up when they give the toilet a flush.)
For you, seller, an open house is a chance to throw open the doors. To dazzle buyers with the big reveal. To make someone fall head over heels for your charming abode.
These tricks can help you make your open house a massive hit.

1. Time It Right

Your agent will typically hold an open house for two to three hours between 11 a.m. and 5 p.m. on Saturdays and Sundays, when buyers have time and flexibility away from their jobs. To maximize your foot traffic, avoid having your open house during holidays, big community events (marathon days, for example), or unofficial “holidays” like Super Bowl Sunday.

2. Let Your Agent Take the Lead

In your own personal Open House Show, your real estate agent has two roles. To you, they are the director, giving you instructions on how to prepare for open house day, and what to do during the event. To buyers, your agent is the host. They will welcome viewers, introduce your home’s impressive features, and take questions from the audience.
Your job is to make your house look like a million bucks — or more like $300,000, depending on your price range. (Tips on cleaning and spiffing up your home in a moment.)
The job of your agent, an expert on your local real estate market and what makes buyers tick, is to take care of the rest. That will include:

• Staging your home, or recommending a reputable stager that you can hire
• Hosting the open house
• Communicating with home buyers and buyers’ agents
• Receiving feedback during the open house and communicating that feedback to you

Your agent will also recommend that, actually, you should probably leave while they show off your house to strangers, who will look under your sinks and peek into your closets. Why should you heed that advice? Because it makes good business sense for you.

1. A homeowner’s presence can make it awkward for the buyer. Buyers want to make assessments on their own, without worrying about how the seller might react or try to influence them. 
2. Buyers may have trouble picturing themselves living in the house when the owner is right there, say, serving lemonade in the kitchen.
3. Sometimes sellers say too much. You might point out something that you think is a nice feature or amenity of your home, when it’s something that might turn off a buyer. (That busy arcade bar down the block may have been your favorite place to meet friends and play Pac-Man during weekends, but it could be a deal breaker for a buyer looking for a peaceful block.) You might blurt out something that could tip your negotiating hand, like how motivated you are to sell (soon!), or that you always wanted to update the retro kitchen — but just never got around to it. 

The last things you want buyers to think after the open house is, “This place needs work,” or “This seller is desperate — I have the upper hand.” So, let your agent take the lead. This won’t be their first rodeo. They know the nuanced ways to show your home in its best light so that buyers will oooh and ahhh. They also know how to strategically answer questions from buyers to help set you up for success later, during negotiation.

Your agent can also stage a broker’s open house on your behalf. Unlike standard open houses — where buyers can stop by — at broker’s open houses, only real estate agents and other industry professionals are invited to attend. Generally, a broker’s open is held within the first few days of a house being put on the market. Complimentary lunch is often served as an incentive to get more people to show up.
There are two main benefits of having a broker’s open house:

1. It gives your listing more exposure. 
2. It allows you to get feedback from real estate agents on your home. 

If your house “shows well,” as they say in the industry, the agents who toured your home may recommend it to one (or more) of their buyer clients. If your home doesn’t get rave reviews, your agent will relay that feedback to you, and may suggest improvements before the next open house, such as staging certain rooms.

Related Topic: Sell a Home: Step-by-Step

3. Try Some Simple Staging

You want your home to look its best while it’s on the market — especially during the open house. Many agents say the best way to primp your home for its big day is to stage it.
Depending on what your agent recommends, staging may involve renting new furniture or decor for certain rooms in your home. There are also some easy staging tricks you can try on the day of your open house. Consider displaying a bouquet of fresh flowers in the entryway, setting your dining room table to make it look inviting, or turning on your outdoor sprinklers shortly before visitors arrive to make your lawn sparkle.

4. Clean Like Crazy

When your home is on the market, you need to keep it in showing shape — not only for the open house, but also for any scheduled showings with buyers. Even though you’ve already (hopefully) cleaned and organized your home for its listing photos, there’s a good chance you’ve let clutter or dust pile up again, especially if you have children or pets.
Make sure appliances, windows, and mirrors are fingerprint-free. Clean and organize your closets, cabinets, and under the sinks (during the open house, buyers are allowed to be nosy). Clear every bit of clutter and get rid of it or put it in storage.
Don’t have the bandwidth to do a deep clean? Hire a house cleaning service to do the work for you. A professional cleaning service costs around $115 to $230 on average. If you’re not sure about which service to hire, ask your agent to recommend cleaners.

5. Do a Smell Check

If buyers get a whiff of something funky, they’re going to run — not walk — out of your open house. A week prior to the open house, ask your agent or a neighbor to do an honest, no-holds-barred smell check. Some possible smell solutions:

• If your house has the aroma of your beloved pet(s), deep clean the carpets, relocate the litter box, and take steps to eliminate all olfactory traces of Fluffy.
• If the basement is dank and musty, buy a dehumidifier to remove air moisture and run a fan to circulate the air.
• If the kitchen drain stinks, drop in a cup of baking soda, then two cups of white vinegar. Enjoy the bubbling, then let the mixture sit for 20 to 30 minutes. Finally run hot water for 15 to 30 seconds to flush the odor.

6. Put Your Pictures (and Valuables) Away

You want your home to feel cozy and inviting, but not like someone specific (you, for example) is living there. Personal belongings such as family photos, awards, and religious art can distract home buyers and make it harder for them to imagine themselves living in your home. You don’t have to go overboard — the idea isn’t to eliminate every trace of yourself — but consider temporarily hiding some pictures and personal effects out of sight during the open house.
There’s a safety element to stowing your personal belongings, too: Though your agent will be at the open house, you’re inviting strangers into your home.

• Securely store checkbooks, jewelry, prescription medications, family heirlooms, and other valuables.
• Alert your neighbors to your open house date — as a courtesy, but also to ask that they let you know if they notice any suspicious activity, in the unlikely event suspicious activity occurs.
• Make sure your agent signs visitors in and asks them to show I.D., so that you have a record of who was in your house. (Bonus: With the sign-in sheet, your agent can follow up with buyers to find out if anyone is interested in making an offer.)
• Lock windows and doors after the open house. 

We’re not suggesting that visitors have any intention other than potentially buying your home. It’s just a good idea, generally speaking, to keep your home secure.

7. Let the Light In

Light doesn’t only (literally) brighten up your space. It also makes rooms look and feel larger. On open house day, open all curtains and blinds to let natural light in. (And in the week before the open house, make sure curtains and blinds are squeaky clean.)
Replace every single burnt-out light bulb in and outside the home — buyers should see a working light every time they flip a switch.

8. Give Your House Some Extra Curb Appeal

Buyers will judge your house on its outsides. So make last-minute improvements to turn up your home’s curb appeal. Cut the grass, prune the trees, and trim the shrubs. Touch up porch fixtures and furniture with a little paint. Heck, paint the whole porch, if your budget allows. Plant new shrubs or set out potted flowers.
Small, relatively low-budget outdoor enhancements will make your home look all the more enticing to buyers — and can add some last-minute value to its price.

9. Draw Attention to Your Home’s Best Features

After your agent signs in and welcomes buyers to your home, they typically will have some time to wander around on their own. Even though you won’t be there, you can still draw visitors’ attention to features in your home that you’d like to highlight.
Prior to the open house, post (friendly, aesthetically pleasing) signs around the house with calls to action such as, “look down, new hardwood floors,” or “gas fireplace, push this button.” Buyers will likely appreciate the help, and that they’re working with a conscientious seller.

10. Serve Refreshments

Serving warm cookies or freshly baked brownies at an open house is one of the oldest tricks in the book. That’s because it works: Buyers love being greeted with a sweet treat and a cold or warm beverage depending on the time of year. Refreshments also give people a reason to stay longer: No one will rush off because they’re hungry or thirsty.
Your agent may even have relationships with a local cafe or bakery, which might offer snacks for free advertising at the open house.

What to Do During and After the Open House

Once you’ve done everything you can to make your house look and feel amazing to buyers — and your agent is on site to assume their hosting duties — the time during your open house is yours to enjoy. Go to the park, get a three-course lunch, do whatever you like as long as you’re free to take calls.
Your agent may need to get in touch with questions, so make sure you’re available and have good cell phone reception. (A movie, for example, is not a great activity for you during the open house for that reason.)
After the open house ends, your agent will share with you what questions buyers asked and any comments they overheard by visitors. Buyers’ remarks will likely run the gamut, including some that could be negative. (“Why is the closet such a mess,” for example.)
The important thing is to stay open to buyers’ feedback, and to follow your agent’s advice about how to respond. Based on buyers’ reactions, your agent may recommend that you make certain repairs, do some painting, or invest in additional staging before your next open house. Whatever they advise, it’s not personal — it’s just the business of selling your home.

Looking To Buy or Sell in Illinois? Contact Dmitry Vikhter at Buy Homes America, Inc.