Summary: COVID-19 has made everyone’s life difficult. If you’re behind on your mortgage due to COVID-19, figure out your loan type and contact your servicer. There are also unemployment benefits, student loan deferments, help for small businesses, and veterans.
We have put together this page on coronavirus (referred to as COVID-19) financial help to make sure you get the information you need. Cross Stone Law is open and accepting new bankruptcy cases. For your safety and ours, we have protective measures in place. We are able to handle your bankruptcy case from beginning to end without requiring you to come into the office. The US Bankruptcy Court currently holds all hearings by telephone or video. If you are considering bankruptcy, reach out to us.
Various programs provide temporary help to individuals and small businesses affected by the Coronavirus.
Behind on Your Mortgage?
If you have received a notice of foreclosure, contact Cross Stone Law or another qualified bankruptcy lawyer immediately.
Behind on your mortgage due to COVID-19 illness or have lost income?
Certain federal loans have relief. You need to communicate with your mortgage servicer. Don’t just do nothing. Relief on certain federal loans includes the right to request forbearance and/or deferrals.
Step 1 – Figure out what type of loan you have
Determine if you have a Fannie Mae loan, check here or call 1-800-232-6643 and press “4” for homeowner.
Determine if you have a Freddie Mac loan, check here or call 1-800-373-3343 and press “4” for homeowner.
Verify whether your loan is VA, USDA, or FHA, look at your original loan documents. The Closing Disclosure indicates what type of loan you have.
If you do not have a federally backed mortgage, your mortgage company may still be offering options. Reach out to your mortgage company to see what is available to help you.
Step 2 – Contact your loan servicer
Read this first!
- Foreclosures on specific types of federally backed loans are allowed with some restrictions.
- Right to request forbearance for certain federally backed loans must have been obtained by February 28, 2021. Most loans require that you apply for forbearance by September 30, 2021.
- Consider your options for payback of the missed payments. There are options to choose from. Consider carefully. You don’t want to end up owing thousands of dollars at the end of the forbearance all at once. The Consumer Finance Protection Bureau’s Guide to Forbearance has great info, including educational video so you can understand how to repay your loan.
- Negative credit reporting on your home loan is not allowed if you obtain a forbearance. If you had black marks on your credit report before the forbearance, those are still allowed.
- Whatever workout option you choose, get it in writing, especially the payback of the missed payments.
Having trouble getting help from your servicer?
If you can’t reach your servicer or you are having trouble, other contact numbers are listed below. You also have a right to submit a complaint to the Consumer Finance Protection Bureau online or by calling 855-411-2372.
Fannie Mae & Freddie Mac loans
For help, if you have a Fannie Mae or Freddie Mac loan, you must contact your servicer. For FHA mortgages, you may also contact Fannie Mae at 1-800-232-6643 or Freddie Mac at 1-800-373-3343.
You can also call the HUD National Servicing Center at 1-877-622-8525.
First, contact your servicer. The VA is offering detailed information on their website.
The USDA has extended its foreclosure and eviction moratorium for direct and guaranteed home loans through June 30, 2021. Read more about the extension.
For info on FHA loan relief, call your servicer or the HUD National Servicing Center at 877-622-8525.
Pandemic unemployment benefits have ended.
Here are tips on options if you are laid off.
Do You Have Student Loans?
Student loan forbearance is extended until at least January 31, 2022.
You should have received a notice telling you what happened with your student loans. If you have not, contact your servicer. Payments are automatically suspended until the forbearance end date. No interest will be charged during this suspension period.
You should log on to your student loan account and check to be sure the servicer is showing no payment due and the next payment due on the current forbearance end date. You should get a notice on the month before it ends letting you know the suspension period is ending and that you may be eligible to enroll in income-driven repayment plans. Check your account balance and make sure it is correct. Check your credit report and be sure the student loan account is correctly reported.
For qualified federal loans, here is a list of answers to frequently asked questions.
Student loans that the US Department of Education does not own may have their own assistance programs.
Is Your Business Struggling?
Emergency Injury Disaster Loan
SBA is accepting applications. Under the current law, if your business is a corporation, partnership, or limited liability company, you are not required to personally guarantee the loan. You are required to pledge the business assets if the loan is over $25,000.
Considering Withdrawing Funds From 401k or IRA?
If you, your spouse, or a dependent get the virus or you experience certain negative consequences from the pandemic, you can withdraw money from your 401k or IRA without the usual 10% penalty. You still have to pay taxes on the money, but that can be spread over a 3 year period. You can also put the money back within the 3 year period even if the rules keep you from making a contribution that large.
Are You a Veteran With Federal Debt?
For benefit debts, contact the VA Debt Management Center at 1-800-827-0648.
For health care debts, contact the Health Resource Center at 1-866-400-1238 or click on Coronavirus updates.
Get a Free Weekly Credit Report
If your creditor has agreed to give you a deferment or other relief on any debt, no negative credit reporting is allowed through 120 days from when the national emergency declaration ends. You can obtain a free copy of your credit report weekly from the 3 major credit agencies.