As so many people’s work and livelihood are being impacted by COVID-19, we’re sharing the financial programs and help that exist or are on the way that we think are the most helpful. Below are links and updates on help for mortgage payments, advice for landlords and tenants, and the latest update on the federal stimulus package.
Mortgage help
Work directly with your bank
While there are some assistance programs we’ll link below, we’ve consistently been told the best thing anyone can do that’s having a hard time paying their mortgage, or thinks they will soon, is to reach out to their loan servicer right now. Each bank is putting together its own plan on what they’ll offer to clients so there's no complete cohesive plan on what it will be for everyone.
The clearest guidelines for relief from coronavirus related financial impact are from anyone who has a loan that is owned by Freddie Mac and Fannie Mae; which account for about 1/2 of loans out there. It even applies if it’s a 2nd home or a rental property. Here are the potential ways they will help:
Providing mortgage payment relief for up to 12 months
Waiving penalties and late fees
Stopping foreclosures and evictions until May 17, 2020
Pausing credit reporting for past due payments once you have a relief plan in place
Potential loan modifications to provide relief
They are stressing to reach out to your loan servicer now if you’ve been effected OR think you will be effected to get the ball rolling on a plan.
Here’s a direct link to the material they’ve put out.
Once again, every bank is going to handle things a little differently, so the best thing to do is to reach out to your bank sooner than later.
Oregon Homeownership Stabilization Initiative “OHSI”
OHSI is a program administered by Oregon Housing and Community Services funded through the US Department of Treasury. They have a program for help for past-due mortgage payments as well as property tax support. Here’s a link to their mortgage support program.
Tenants & Landlords
Oregon has banned evictions for anyone failing to pay rent for the next 90 days. Portland had put its own plan in place, but this was superseded by the state’s action.
We highly recommend great communication right now whether you’re renting and looking at a tough time paying rent, or if you’re a landlord to check in on how your tenants are doing and what you can do to help. We’re all headed through a tough time, we think upfront communication on any potential issues will keep a strong relationship for once we're through the other side of all this. We’ve seen what we think are smart moves by some landlords (that are financially able to) to give a reduction in rent. This can go a long way to helping tenants that are impacted by coronavirus and increase the chance some money will still be coming in.
Federal stimulus Package
[Likely to be approved soon]
While the federal plan is not approved yet, it seems to be getting clearer on what is likely. Here's our take-away from what the stimulus bill will likely include:
Direct payments of $1,200 for each adult, as well as $500 for each child. The payment amount doesn’t apply to those making more than $75,000 individually or $150,000 for married couples. Reduced checks will go out to individuals who made between $75,000 and $99,000 and to couples who made between $150,000 and $198,000.
Note that these payments are not taxable, but it’s based on 2020 income. It’s possible that some people will owe money back if they qualify for the funds based on 2019’s returns, but end up earning more in 2020 that pushes them over the qualification limit.
Extended unemployment insurance program for laid-off workers that will allow for four months of "full pay" and will apply to traditional workers for small and large businesses as well as those who are self-employed and workers in the gig economy
Loans for small businesses that are impacted, some of the loans could be forgiven
Business Help
Prosper Portland and Business Oregon are the have the most cohesive pages for business help and financial assistance that we’ve seen.