Tuesday, April 7, 2020

Borrowers are entitled to Temporary Relief from Federal Student Loan Payments and Collections – Coronavirus Stimulus Bill 2020

Section 3513 of the Coronavirus Stimulus Bill suspends student loan payments through September 30, 2020. Monthly interest will not accrue while the suspension is in effect. During the suspension, the student loan borrower’s credit report will not reflect missed payments.

Section 3513 suspends all collection actions involving a student loan including the suspension of wage garnishments, reductions of tax refunds or any other reduction of a federal benefit payment.

Monday, April 6, 2020

Multifamily (5 or more residential units) Borrowers can get a Mortgage Loan Forbearance During COVID-19 Emergency – Coronavirus Stimulus Bill 2020

Section 4023 of the Coronavirus Stimulus Bill requires lenders and servicers to provide up to 90 day forbearance to multifamily borrowers with a Federally back mortgage loan. 

Section 4023 entitles a multifamily borrower to an initial 30 day loan forbearance with the right to ask for 2 additional 30 day forbearances so long as the multifamily borrower submits a hardship request at least 15 days before the initial 30 day forbearance expires.

A multifamily borrower is an owner of a building with 5 or more residential units.

During the forbearance period a multifamily borrower cannot start nonpayment of rent eviction proceedings against any tenant living in the property. A multifamily borrower cannot give any tenant a notice to vacate during the forbearance and the multifamily borrower must give a minimum 30 day notice to vacate after the expiration of the forbearance. Also, during the forbearance period, a multifamily borrower cannot charge a tenant any late fees or any other charges.

To qualify, the multifamily borrower must submit a forbearance hardship request to the lender or servicer. A multifamily property owner must be current with his or her loan payments at the time of the request. A multifamily borrower can discontinue the forbearance at anytime.

The right to a forbearance ends when the COVID-19 National Emergency officially ends or on December 31, 2020, whichever date come first.

Friday, April 3, 2020

60 Day Foreclosure Moratorium Alert – Coronavirus Stimulus Bill 2020

Section 4022 of the Coronavirus Stimulus Bill contains a moratorium against initiating judicial or non-judicial foreclosures on any property owner with a Federally backed mortgage loan.**

The moratorium prevents any foreclosure related action for 60 days beginning on March 18, 2020.

This moratorium applies to first and second mortgages on cooperatives, condominiums and 1 to 4 family properties.

If you need financial assistance...Be Proactive. Contact your mortgage lender or servicer immediately to get more information and make sure you refer to this section of the law when you speak to your mortgage lender or servicer.

**A Federally back mortgage loan is any loan insured by the Federal Housing Ad-ministration; insured under the National Housing Act; insured the Housing and Community Development Act of 1992; guaranteed or insured by the Department of Veterans Affairs; guaranteed, made or insured by the Department of Agriculture; or purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.




Thursday, April 2, 2020

Mortgage Lenders and Servicers Must Provide Homeowners with Loan Forbearance During COVID-19 Pandemic – Coronavirus Stimulus Bill 2020

Section 4022 of the Coronavirus Stimulus Bill requires mortgage lenders and servicers to provide homeowners with up to 12 month forbearance on a Federally back mortgage loan**.

Section 4022 entitles a borrower to a 180 day loan forbearance with the right to ask for an additional 180 day forbearance so long as the borrower submits a hardship request stating that he or she is experiencing a financial hardship because of COVID-19.

The forbearance applies to first and second mortgages on cooperatives, condominiums and 1 to 4 family properties.

During a forbearance a borrower’s loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. During the forbearance a mortgage lender or servicer cannot charge or collect any fees, penalties or default interest.

It does not require a borrower to submit any documentation to prove financial hardship due to COVID-19. A mortgage lender or servicer must provide a forbearance once a borrower says he or she is experiencing a hardship because of COVID-19.

If you make a request for a forbearance make sure you remind the mortgage lender or servicer that under Section 4022 they must give a forbearance upon request.

**A Federally back mortgage loan is any loan insured by the Federal Housing Ad-ministration; insured under the National Housing Act; insured the Housing and Community Development Act of 1992; guaranteed or insured by the Department of Veterans Affairs; guaranteed, made or insured by the Department of Agriculture; or purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association.

Tuesday, March 31, 2020

Penalty Free Withdrawals of up to $100,000 allowed for 401(K) Retirement Accounts – Coronavirus Stimulus Bill 2020

Section 2202 of the Coronavirus Stimulus Bill allows for penalty-free withdrawals of up to $100,000 from 401(k) retirement accounts. Typically, if you wanted to withdraw money from a 401(k) retirement account prior to the age of 59 1/2 a 10% penalty would be due. Section 2202 now eliminates the penalty.

Besides the temporary elimination of the penalty you can prevent the payment of income taxes on the withdrawn amount so long as you return the money to your 401(k) account within 3 years.

Section 2202 is available to anyone who needs a “coronavirus related distribution” or is experiencing “adverse financial consequences” because of the COVID-19 pandemic.

Section 2202 makes it easier to borrow money from your 401(k) by increasing the limit from $50,000 to $100,000. It also extends the payment date for any 401(k) loans due in 2020 for up to one year.

Section 2203 waives the rules for retirees who are required to withdraw money from tax-deferred accounts and who are required to pay taxes on the withdrawals in 2020.

Monday, March 30, 2020

Tenants Living in Properties that have a Federally backed Mortgage Loan Cannot Be Evicted During the COVID-19 Emergency – Coronavirus Stimulus Bill 2020

Section 4024 of the Coronavirus Stimulus Bill prevents property owners with Federally backed mortgage loans from evicting tenants for non payment of rent.

The eviction moratorium applies to any tenant living in a cooperative, condominium, 1 to 4 family building or a multifamily (5 or more residential units) building. The eviction moratorium also applies to tenants living in housing under the Violence Against Women Act of 1994 and rural housing under section 542 of the Housing Act of 1949.

The eviction moratorium prevents a property owner from serving notices or starting legal proceedings in court for non payment of rent. The eviction moratorium prevents a property owner from charging late fees or any other fees for non payment of rent. A property owner must give a minimum 30 day notice to vacate after the expiration of the eviction moratorium.

The eviction moratorium begins on March 27, 2020 and remains in effect for 120 days.

The eviction moratorium does not apply to Federally backed construction loans or any other type of Federally backed temporary financing.

Tuesday, March 24, 2020

Coronavirus is a Natural Disaster of Immense Proportions that Impacts Real Estate - Latest News - 3-24-2020

In the past 3 months COVID-19 aka the coronavirus pandemic has upended all beliefs regarding the speed in which fear can grip the world. Coronavirus is a natural health and economic disaster of immense proportions.

The impact of the coronavirus pandemic upon real estate will be felt for years to come.

First. The negative economic effects of the coronavirus has caused the Federal Reserve to use every available policy tool in its arsenal including the lowering of interests rates close to zero. The U.S. Government is poised to pass an almost 2 trillion dollar stimulus package to save the economy. However, the question remains: Will all of the monetary and stimulus actions be enough?

Fed seen cutting interest rates to 0% soon in bid to help weather coronavirus storm

Monday’s dramatic Federal Reserve announcements, explained

Negotiators on ‘2-yard line’ on coronavirus economic rescue plan

Second. The U.S. has restricted travel from Europe and China. Cities and states are declaring emergencies. Business, marketing, trade and sporting events are cancelled. Our ability to engage with each other, to move around or to gather freely has become restricted.

Trump clarifies comments on Europe travel after initially saying restrictions applied to cargo, not just people

Markets suffer record meltdown as global coronavirus alarm grows

Coronavirus: Which countries have travel bans?

Third. The stock market has fallen to levels not seen since the Great Recession. China's supply chain is frozen. Businesses and corporations are experiencing cash flow and debt problems. The lack of cash flow will lead to job losses. Citizens are nervous about their families and resources so they are beginning to "hoard". Citizens are nervous about health care and job security. The recent branding of the phrase "social distancing" as a means to prevent the spread of coronavirus requires citizens to stay away from crowed places and mass events. It also requires keeping a distance (6 ") between you and your neighbor. Yet if people are not out and about, socializing, travelling and spending money then the economy slows down. Less economic activity means less money for real estate development and investment.

New York real estate hit by coronavirus, market decline

How coronavirus is impacting the housing market

As Coronavirus Spreads, Real Estate Deal making Slowed By Travel Restrictions

‘Social distancing’ comes at a massive economic cost, but it’s now the only way to save millions of lives.

National Association Of Realtors Survey Shows How Coronavirus Has Started To Impact The Real Estate Market

Coronavirus’ Impacts On Real Estate: Why You Need To Think Short-Term And Longer-Term

It is our hope that the ultimate effects of the coronavirus will not lead to a worldwide depression. Instead it is our hope that the strength of our communities, our governments and our businesses will lead to the fast recovery of our collective health and economy.