COVID-19 “Coronavirus”, has impacted and affected every major area of our lives. From our jobs, schools, social lives and weekend plans, there is no one that hasn’t been affected on some level. So many of our favorite places to go have been shut down, restaurants, shopping, parks, and more. This has left a lot of people jobless.
If you are wondering about making rent or paying your mortgage payments, you are not alone. Over 20 million have applied for unemployment over the last month and a half. Leaving so many Americans unable to cover their monthly expenses.
On April 1, Chicago Mayor, Lori Lightfoot, announced that the Chicago Housing Authority will defer rent for thousands of tenants living in Chicago public housing as long as the Illinois stay-at-home order remains in effect.
On a national level, the House and Senate passed the COVID-19 Economic Relief package which includes relief plans for rent and mortgages.
Here are a few things included in the CARES Economic Relief plan you may want to consider...
IF YOU ARE A LANDLORD
If you are a landlord, there is now a temporary hold on evictions for 120 days. This also means landlords cannot charge late fees during this time. So if you have a property with a mortgage that is backed by the Federal Government (HUD properties, Fannie Mae, Freddie Mac, Rural Housing Mortgage, etc) you cannot charge late fees, or evict your tenant for the next 4 months - regardless if they actually pay their rent or not.
If you need additional resources or have specific questions, a great resource to look at is Housing Action Illinois.
IF YOU ARE RENTING
There is currently no rent forgiveness or forbearances in place. However, with a 120 day eviction hold - if you cannot pay your rent, you will not be evicted during this time. This does not mean at the end of the 120 day period - rent will not be owed. It will still be owed, and required, meaning there is a chance there will be an increase in evictions at the end of the 120 days.
If you’re truly experiencing a hardship, talk to your landlord, some are more flexible than others to workout payment options.
IF YOU HAVE A MORTGAGE PAYMENT
For those with a federally insured mortgage or single family rental property, another part to consider within the economic relief package - is the mortgage forbearance. Some lenders are offering up to 360 days of a forbearance - without any proof of hardship required. This enables you to push back payments for a period of time - however, make sure you clarify with your lender when those “missed payments” will be due. Some will require all payments due when you resume paying. No additional fees, interest or penalties are allowed to be applied during the forbearance period.
If you are in a position where you need to re-organize your spending short term, a mortgage forbearance may be something to consider.
If you have more specific questions, make sure to reach out to your lender or landlord.
