COVID-19 Relief For Rent & Mortgage Payments

April 01, 2020

What should you do if the COVID-19 situation makes it difficult to pay the rent or mortgage due to lost wages, caring for a sick family member, or your own illness? Passage of the federal CARES Act on March 27, 2020 may provide some relief.

If you rent:

  • Evictions are frozen for 120 days for renters who live in properties that receive federal subsidies such as Section 8 vouchers or for renters whose landlords have government-guaranteed loans, including loans backed by Fannie Mae, Freddie Mac, the FHA, or the USDA. 
    • If your rental unit is not covered by the CARES Act, individual states have issued similar suspensions on evictions. Check your state government’s website or seek legal assistance from your state’s legal aid society.
  • During this moratorium, landlords are forbidden to charge fees or other penalties for nonpayment of rent.
  • Landlords also can’t issue a notice to leave for 150 days after the Act’s passage.

If you have a mortgage:

  • If you lost a job or your income was reduced due to the COVID-19 outbreak, you may qualify to have your mortgage payments reduced or suspended for up to one year.
    • Specifically, federally-insured mortgage giants Fannie Mae (FNMA) and Freddie Mac (FHLMC) have been directed by regulators to offer mortgage forbearance and waive penalties and fees for up to 12 months.
    • Delinquency related to mortgage forbearance will also not be reported to credit bureaus.
    • Even if your mortgage is not backed by either FNMA or FHLMC, many banks are offering similar forms of mortgage relief during the pandemic. Check your bank’s website for more information.
  • If you are a landlord who owns one or more multi-family homes, you are also entitled to up to 90 days of forbearance on these mortgage loan payments if you also have documentation of a financial hardship. Landlords must have been current on payments as of Feb. 1, 2020, to take advantage of these protections and can make requests for up to 30 days of forbearance at a time.  

What you can do:

  • Continue to pay your rent or mortgage if you can, even if that means cutting out some other expenses or letting less critical bills slide a bit.
  • Definitely contact your landlord or mortgage servicer and let them know what’s going on with your financial situation if you are unable to pay some or all of what you owe each month.
  • Stay patient on the phone. Lenders and landlords are likely to be fielding many calls. Document all attempts to contact your lender or landlord.
  • Review the Consumer Financial Protection Bureau (CFPB)’s “Guide to Coronavirus Mortgage Relief Options,” which also includes protections for renters.