In a few short weeks, life as we know it in America has drastically changed due to the COVID-19 pandemic. The hustle and bustle of our cities have subdued, and the traffic on our highways has diminished significantly. As we anxiously anticipate the impact of the outbreak on our economy in the forthcoming months, it is prudent to plan for potential outcomes. Whether you're currently experiencing employment instability, or foresee it in the near future, there are preventive steps you can take for your financial protection.
Consult Your Mortgage Advisor
Given the rapid evolution of information in these uncertain times, it's critical to consult your Mortgage Advisor, possibly from CrossCountry Mortgage, for guidance or further directives on the next course of action. You'll likely be referred to your mortgage servicer, who handles statement issuance, payment collection, and in worst-case scenarios, foreclosure initiation. Should you be at risk of missing a payment, it is imperative to contact your servicer promptly. (Your servicer's name is usually indicated on your mortgage statements.)
On March 18th, 2020, President Trump instructed the Department of Housing and Urban Development (HUD) to suspend evictions and foreclosures till the end of April, providing some relief to Americans grappling with sudden financial hardships. However, it's important to note that this suspension applies solely to homeowners with mortgages backed by Fannie Mae, Freddie Mac, or FHA mortgages on single-family homes. For more details about President Trump's decision, please click here.
Document Your Financial Struggles
In response to the evolving economic climate, the federal government is expected to introduce measures to assist those severely impacted by the COVID-19 pandemic. However, to benefit from any forthcoming aid, you may need to validate your financial hardship. As per Curbed, you should commence gathering necessary documentation immediately, which may include but not limited to:
- Pay stubs demonstrating any pay or hourly reductions
- Statements reflecting significant changes in your stock portfolio
- Documentation verifying your job termination
Maintain a Record of Correspondence with Your Servicer
The financial fallout from COVID-19 has left many individuals in a similar position, causing industries to halt and leading to job losses for thousands of homeowners, with potentially more to come. While this might appear overwhelming, remember you are not alone in this. With servicers currently operating at full capacity, patience is key when communicating with them. Nonetheless, ensure you meticulously note details of your conversations, and if feasible, record the discussions for future reference. Any communication you receive from your servicer should be stored appropriately. Essentially, stay organized in case you need to furnish any documents or evidence at a later date.
At CrossCountry Mortgage, we wish to reassure our clients that we are always available to address any questions or guide you to suitable resources. With the situation continuously changing, we are committed to keeping you updated with relevant information whenever possible.
Should you have any queries or concerns regarding your mortgage during this period, please do not hesitate to contact us.
Unsure if something will affect your loan approval process?
Let us know your concerns as soon as possible and we will answer your questions!