"The $2 trillion stimulus package that passed the US Senate Wednesday will allow homeowners hurt by the health crisis to postpone mortgage payments for up to 12 months. That mirrors moves announced last week by mortgage giants Fannie Mae and Freddie Mac.....The goal is to make sure the millions of job losses caused by the social distancing restrictions imposed by governments don't spark a wave of foreclosures. That domino effect would crash the real estate market, amplifying the considerable economic pain inflicted by the health crisis.....But that wave of missed mortgage payments threatens to spark a crippling cash crunch in the real estate finance industry unless the Federal Reserve steps in with even more emergency lending. Analysts expect the Fed to step in soon after the stimulus package becomes law. The House of Representatives is expected to pass the stimulus bill Friday....."
"The $2 trillion stimulus package that passed the US Senate Wednesday will allow homeowners hurt by the health crisis to postpone mortgage payments for up to 12 months."
Anyone knows if this or any other similar program covers mortgage payments for rental investments? Tenants in two of my rentals have notified me that they are out of work and will not be able to pay rent next month but who knows how long? I should be able to manage for couple of months from the reserve but after that I will run into issues.
The Federal Housing Finance Agency (FHFA), which oversees Fannie Mae, Freddie Mac, and the Federal Home Loan banks, is providing payment forbearance to borrowers impacted by the coronavirus for up to 12 months due to hardship.
Additionally, Freddie Mac has implemented a program offering relief to multifamily landlords whose mortgages are financed with a Freddie Mac multifamily fully performing loan. Under this program, landlords can defer loan payments for 90 days by showing hardship due to COVID-19; in return, landlords are required not to evict any tenant based on nonpayment of rent during the forbearance period.,
Isn't postponing payments up to 12 months to going to lead to balloon payments. I guess borrowers will need to re-finance, or borrow against home equity assuming rates and home prices are stable.