You may or may not have taken advantage of the current deferral plans for mortgages during COVID-19. While these vary depending on the type of mortgage you have, many people’s deferral options are set to expire in June or July unless the government provides legislation to extend them. This means that your relationship and communication with your lender is more important than ever. M1 Capital Corp in White Plains, NY is here to help with advice on working with mortgage lenders during COVID-19.
Cultivating Relationships with Your Mortgage Lender
It can be difficult to develop close relationships with your bank or mortgage company since they are often large. Most of the time, borrowers do not bother to cultivate a relationship with someone. Many even speak to different staff members each time they call. Now is the time to cultivate relationships with your lending company. Learn more about what they are doing to address financial issues during COVID-19. Follow M1 Capital Corp’s blogs for updates as things are changing rapidly.
Navigating Your Payment Plans During Times of Financial Stress
The main reason you want to have a close relationship with your lender is to negotiate successful payment plans when you need. Depending on the bank, some may offer you opportunities to refinance or modify home payment plans. If you have tenants, communicate with your lender whether they are paying their rent on time and what your contingency plans are. A best practice is to be clear on your plans as a borrower to remain in good standing. Have you asked your tenants about their plans to navigate payments once eviction moratoriums lift? Many local areas have rental assistance funds set up that they can apply to.
Collaborating on Solutions
Your lenders are aware our legislators are working on bills to provide rent and mortgage relief. As a borrower, it is great to do your homework so you know what is and what may be available to you. If legislation passes, homeowners may be able to use relief to reduce mortgage principle or interest rates, pay property taxes, insurance, or cover utility expenses.
Mortgage Relief is Here, and More is on the Way
It is important to note that most relief will target lower to moderate income households. If you do not fall into these categories, then review what other types of relief may be available to you and your lender. The Coronavirus Aid, Relief and Economic Security Act—also known as the CARES Act—was already passed to provide $2 trillion in stimulus packages. If you have a federally backed mortgage, then you can ask for relief. If you do not, check with your state and lender to see what other programs they may be offering.
M1 Capital Corp is dedicated to helping the real estate community navigate these challenging waters and learn more. Feel free to speak with our White Plains, NY team about all the opportunities available.