What Happens When It All Comes Due?
Our North Texas housing market was very strong before COVID-19 and we’re confident that it will thrive again in the near future. In the meantime, no one wants to see a frenzy of foreclosures and evictions over the next 3-6 months! What we all want is to see our community return to the very recent period of progress and prosperity!
Sadly, most Americans were caught without any savings in reserve, which means one or two missed paychecks could prevent them from paying their rent or mortgage. On the flip side, landlords and mortgage companies have their own loans, taxes, and expenses that were supposed to be paid by that rent or mortgage payment. If thousands of people stop paying for their housing, then the landlords and lenders go bankrupt. If they go bankrupt… well, let’s not go there!
The good news is that many folks (essential workers) are still able to make their housing payments. If you have a mortgage, keep paying it! If you are a tenant, keep sending in your rent payment. Why? Because nothing in life is free! If you don’t pay now, you’ll pay later – possibly all at once!
Out of Work
Whether you’re a homeowner or a tenant, don’t just skip your housing payment and believe you’re okay. If you can’t pay, let your lender or landlord know immediately! Rent and mortgage payments are still due, even if lenders and landlords can’t foreclose or evict you YET. They will still file all the eviction/foreclosure paperwork, which will be processed as soon as the freeze is lifted!
Mortgage forbearance is available for most homeowners, but you must apply with your lender. It is not automatic. Likewise, most landlords will work with you, but that could mean that they will need a mortgage forbearance themselves. Open communication will help everyone to prepare for the next few months. Emergency rental assistance and low-cost housing may also be available from the Texas Department of Housing and Community Affairs: https://www.tdhca.state.tx.us/texans.htm Additional assistance may be provided with the next Coronavirus bill, but only time will tell!
If you are offered a 90-day forbearance, will all your missed payments be due at the 90-day mark? Will you be able to pay for three months of housing at once? If not, the only advice we can give is to pursue another revenue source so that you can make those payments on time and avoid foreclosure! For many, this is easier said than done, but we pray that everyone finds a workable solution for meeting their housing needs!
Know someone who needs housing, food, clothing, or medical care? HUD Assistance https://www.hud.gov/findshelter
Need to Sell Soon?
Listings are down by 40%, but Buyers are only down by 20% because people still need homes to live in! Ask about remote services like Virtual Showings and Contact-Free Closings.
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