Homeowners and renters: You have options to stay in your homes

Our nation’s housing market continues to be a bright spot in the economy, even as our country fights to regain its footing from the effects of the COVID-19 pandemic. Still, many people may need help getting back on their feet, especially those with hardships brought on by this pandemic. That is why the Trump administration has taken unprecedented steps to support homeowners and renters who are struggling to make mortgage or rent payments.

However, what many homeowners and renters in need of assistance may not realize is that they must also take action — and take action now — to get help. The best outcomes for homeowners and renters can only be achieved if they seek help as early as possible.

At the Federal Housing Administration, we’ve put in place a moratorium on foreclosures for FHA single-family homeowners. We’ve also allowed homeowners to take up to a year of forbearance, a temporary pause in mortgage payments, consistent with the CARES Act. As soon as they are ready to come out of forbearance, we’ve strengthened our toolkit of options for these homeowners to help them obtain a more sustainable mortgage payment plan. Homeowners will not have to worry about making up all of their missed payments in one balloon or lump sum payment, for example, when they come out of forbearance.

For homeowners with FHA-insured (or any government-backed) mortgages, the path starts with your mortgage servicer, where you send your monthly mortgage payments. You must notify your mortgage servicer that you have a COVID-19-related financial hardship to take advantage of mortgage payment forbearance for up to six months initially. Should you need more time as your forbearance period ends, you must notify your servicer. Call them, email them, call them again — reach out to someone in their loss mitigation department, and tell them you continue to need mortgage payment help. Making contact with your servicer is especially important in order to receive any relief available to you under the law.

However, forbearance is a temporary solution for borrowers needing help. If you can pay your mortgage, please continue to do so. If you’re on forbearance now and ready to resume mortgage payments, contact your mortgage servicer. The amount of missed mortgage payments will eventually have to be repaid, and the sooner you seek a permanent mortgage payment solution with your servicer, the better.

For renters, this administration has taken extraordinary measures to provide a safety net for those who need it. Through the Centers for Disease Control and Prevention, it has executed a public health order that would prevent evictions across the country for many renters with COVID hardships.

If you are a renter with COVID-19 related difficulties, to take advantage of this protection you must first notify your landlord or property management company of any financial hardship. Those who qualify for protection under the CDC Order must provide a declaration form to their landlord, the owner of the residential property where they live, or another person who would have a right to have you evicted or removed from where you live. A sample declaration form can be found here.

In addition, if you are a renter residing in Department of Housing and Urban Development-assisted housing, which includes public housing and Section 8 housing, you may be eligible for a reduction in your portion of your rental payment if you had a decrease in income or change in circumstances. Contact your Public Housing Agency or private landlord to review your current income. Then, ask your PHA or landlord to process a recertification to adjust your rent. Recertification means that you will be able to pay less rent. If your unit is managed by a private landlord, we’ve created a search tool to help you find out if your property qualifies. This search tool is available to the public on HUD’s website.

This administration is working hard every day to make options available to help those affected by COVID-19 to stay in their homes. With the strong housing market and the solutions we’ve put in place, I believe that those who seek help can achieve the peace of mind that we will not allow this pandemic to rob them of the place they call home.

Dana T. Wade is assistant secretary for Housing and federal housing commissioner at the U.S. Department of Housing and Urban Development.

Related Content

Related Content