By Kim Parmon, March 20, 2020
What a time, friends. I hope you all are safe and healthy. I’ve been talking to many of my clients this week and watching what’s being shared on social media. There is a lot of concern over what happens over the next few months out there. People want to know how they will pay their bills! There is an NPR article being widely circulated that states that people can seek up to a year’s worth of mortgage relief. I’m seeing friends and loved ones share this and celebrate.
Well, I hate to rain on your parade, but that article isn’t what you think it is. I did some real research on this myself today. I personally have four mortgages, which are serviced by two providers. Both providers had links to “COVID 19 relief effort” information on their main pages. I clicked the links and read through what was being offered, and it turns out it’s forbearance. It’s not a pause on payments, which is what people want. It doesn’t mean that you get to stop paying and pick back up where you left off in a couple of months. It actually works like this:
Say you have a $2,000 a month mortgage payment. You have been laid off due to all of the closures from COVID 19 and you need some relief. So you talk to your lender and they allow you to stop paying your mortgage for six months. During that time, you find a new job and start to get some money together again and you accumulate $5,000 since you aren’t paying your mortgage. That’s all great news. Now, month seven rolls along and your forbearance period is over. The bank says you owe them $14,000, due immediately. You managed to pull together $5,000, but you’re still short $9,000. At this point the bank can issue a foreclosure notice because you owe them money you can’t pay.
Friends, I don’t write this to scare you. We are all in this together and we will get through it. It is going to be ok! But I urge you to really research your options before jumping into a situation that might damage you down the line. What we need is a true pause on both mortgages and rent payments right now. Please call your senators and elected officials! Make your voices heard. If you find yourself in a tough position, I am here to talk. We can strategize and plan together. You are NOT alone. Reach out to me any time, we are in this together.
xoxo,
Kim
Kim Parmon
Principal Broker | Earth Advantage Certified | OR
She/Her
Kim Parmon Principal Broker Lead Listing Agent Earth Advantage Certified | OR kim@livingroomre.com Oregon is the fifth state that Kim has called home in her life, and this one is sticking! After moving multiple times in her childhood, Kim fully understands how empowering homeownership and having roots is...
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