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COVID-19 and Homeownership

CARES Act and Homeownership

On March 27, 2020, the President signed the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) into law. This law also includes an eviction moratorium. A detailed summary is available here.

The highlights are:

  • As of March 27, 2020, renters living in public housing, other federally subsidized housing, and housing with federally-baked mortgage loans should not be evicted for 120 days. Once that 120 days is up, landlords must give renters 30 day notice to evict.
  • During this 120 day period, landlords subject to this law may not charge late fees or other penalties.
  • Beginning March 27, 2020, any homeowner who has a federally-backed mortgage and who has a financial hardship caused directly or indirectly by COVID-19 may request forbearance of their mortgage payment for 180 days, subject to a possible extension of an additional 180 days
  • Borrowers must work with their servicer to determine how/when these payments will be made up.
  • This is NOT automatic, borrowers must make the request.
  • Payments are not forgiven, they will still come due, and may be required in lump sum by some loan servicers at the end of the forbearance.

PLEASE NOTE: it can be tricky to determine if your mortgage is federally-backed. If you are facing foreclosure, or if you are wrestling with questions about these new laws, please feel free to contact our Intake line at (270) 782-5740.

Top 5 Things to Know about COVID-19 as a Homeowner

  1. As of March 18, 2020, evictions and foreclosures are suspended for 60 days for homeowners with FHA-insured Title II Single Family forward and Home Equity Conversion (reverse) mortgages.
  2. As of March 18, 2020,  evictions and foreclosures are suspended for 60 days for homeowners whose mortgage is owned or guaranteed by Fannie Mae or Freddie Mac (roughly 1/2 U.S. mortgages).
  3. As of March 20, 2020, the USDA stopped all foreclosrues and evictions for 60 days for the USDA Single-Family Housing Guaranteed Loan Program ("SFHGLP mortgages").
  4. Banks may be willing to pause or suspended other types of mortgage payments during the pandemic. If you temporarily cannot make your mortgagepayments, call your lender and ask for assistance.
  5. As of March 25, 2020, evictions are suspended for the duration of the COVID-19 State of Emergency. As of March 17, 2020, non-emergency civil hearings will be rescheduled for after April 10, 2019. Any eviction or foreclosures will not have court hearings until then.

If you need legal help with Homeownership:

Contact Kentucky Legal Aid. You may apply for services by calling (270) 782-5740.