Much of the world has suffered at the hands of the Coronavirus pandemic that has swept the globe, sending many into a rather huge depression.
Mental well-being has been impacted significantly for many, as jobs have been lost, which has then had a knock-on effect on those that have bills to pay. Indeed, almost everyone will be in that basket, with many residents in California perhaps concerned with what they are able to do with the mortgages that they have on their homes.
Of course, rents and mortgages are one of the biggest costs that many face on a monthly basis and are an expense that require work in order to pay off the bills. However, there is some help for those with mortgage rates in California, with the state working hard to try and ease the financial burden that has been provided by this unprecedented pandemic.
The State of California have implemented a financial plan to try and soften the impact that COVID-19 has had on their residents, especially when it comes down to paying mortgages.
There are a number of ways in which Californian residents are able to try and lighten the burden, with the following actions having been made available:
90-day grace period for all mortgage payments
Those that have been impacted by the current financial climate because of the virus will be able to take advantage of mortgage-payment forbearances of up to 90 days if they make payments to one of the many lending services that have committed to provide relief support. These financial institutions include Citigroup, JP Morgan Chase, US Bank, Wells Fargo, and almost 200 state-chartered banks and credit unions.
Californians who request the forbearance will be able to reduce or delay their monthly mortgage payments, although the terms of the agreement will be determined by the financial institution and not the State of California.
The length of a forbearance taken out will depend on what happens in the future, so it is worth continuing to keep an eye out on what happens.
Fees waived for 90 days
Residents will also fee any fees and charges that have been incurred over at least a 90-day period waived, or in some cases, even refunded by these banks, as well to further help deal with the current situation that many find themselves in.
No new foreclosures for 60 days
The State of California have also managed to agree to a deal whereby financial institutions will not start any foreclosure sales or evictions, as long as residents meet the guidelines that have been set out.
No credit score changes
Residents that may be concerned about their credit score being impacted by accessing COVID-19-related relief, or by making late or missing any payments will be able to rest assured that their reports will not be impacted. These will not be shared with credit reporting agencies, meaning Californians can rest a little easy and not have that cloud over their heads, as well.
Those that do take out a forbearance may be reported, but this is not generally enough to provide a negative score on the overall credit report by itself.