It’s been an uncertain year. Between furloughs, workplace closures and job losses, many people have found it difficult to keep up with mortgage and rent payments. In fact, 30% of Americans missed their June housing payment – up from 24% in April.1
To help, many banks and landlords have offered mortgage forbearance or rent delays. This allowed you to pause payments for a few months, without facing eviction or damaging your credit.
As these arrangements come to an end, you will need to determine if you are able to resume your usual payments– and your options for how to repay the amount you missed, too.
If you’re in this situation, and you’re worried about how you’re going to afford it, remember that you’re not alone. There’s still a lot of help available.
Here’s what to do.
- Speak to your landlord. You may find that they can help – but only if they know your situation.
- Discuss alternative ways to pay. For example, could you set up a payment plan? Or, could you draw on your security deposit, first or last month’s rent?
- Apply for rental assistance. The Department of Housing and Urban Development website has a list of organizations who are offering support, from The Salvation Army to United Way, and others.
- Above all, never miss a payment without talking to your landlord. If you don’t, your credit rating could take a hit, and you may end up facing eviction. If you speak up first, they may be able to help you find a solution.
- First, speak to your bank. Most will have specialist teams, ready to work with you to find a solution — whatever difficulties you’re facing.
- Can you extend your forbearance period? At Truist, you may be eligible for a forbearance total period of up to a year.
- If you need longer term help, see if you can modify your loan. Restructuring is designed to help you hold onto your house in difficult financial times by finding alternate ways to pay, for example.
- Could you lower your payments through refinancing? Interest rates are low at the moment, so you may be able to get a better deal on your mortgage and reduce the amount you pay each month. To help with refinancing during the delays caused by COVID-19, Truist has extended our rate lock period on refinancing loans to 90 days.
- Above all, don’t miss a payment without speaking to your bank first. It’s in everyone’s interests to help you find a solution without damaging your credit or losing your house.
- If you or anyone in your household is a veteran, you could be eligible for support from the US Department of Veterans Affairs
- If you own a small business, you can apply for a Small Business Administration Disaster Loan. This can be used for business and personal expenses.
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