If you live in the USA and have a mortgage...

(Remember: I am NOT a lawyer and this is NOT legal advice)

Most banks offer 3 months of mortgage "payment freeze" right now. It looks like they will have to adjust it to 6 months with an additional 6 months thereafter. Here's why:

Section 4022 of the CARES Act defines that it pertains to "Federally backed mortgage loans", which it specifies to be several things, of which the last listed is: loans that are "purchased or securitized by the Federal Home Loan Mortgage Corporation or the Federal National Mortgage Association." These are the formal names of Freddie Mac and Fannie Mae - the two organizations that secure MOST of the home loans in the US.

The rest of the section reads:

=== Start quote from the CARES Act

(b) FORBEARANCE.—

(1) IN GENERAL.— During the covered period, a borrower with a Federally backed mortgage loan experiencing a financial hardship due, directly or indirectly, to the COVID–19 emergency may request forbearance on the Federally backed mortgage loan, regardless of delinquency status, by

(A) submitting a request to the borrower’s servicer; and

(B) affirming that the borrower is experiencing a financial hardship during the COVID–19 emergency.

(2) DURATION OF FORBEARANCE.—

Upon a request by a borrower for forbearance under paragraph (1), such forbearance shall be granted for up to 180 days, and shall be extended for an additional period of up to 180 days at the request of the borrower, provided that, at the borrower’s request, either the initial or extended period of forbearance may be shortened.

(3) ACCRUAL OF INTEREST OR FEES.—

During a period of forbearance described in this subsection, no fees, penalties, or interest beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract, shall accrue on the borrower’s account.

=== End quote

If you like to read through the text of the CARES Act you can find it here.

I am NOT a legal expert, but even with my English as a second language, this seems pretty clear. So, if you have to move fast because you lost your income, contact your back to ask for the 3 months that they offer now, and keep the following in mind in case 3 months won't be enough.

Yoram Baltinester leverages his multi-disciplinary experience with technology and personal development to partner with high-performing entrepreneurs and leaders for the purpose of driving better results in their businesses, developing their teams, and increasing their level of leadership. He specializes in aligning purpose with decisive action to help these successful professionals reach the next level of personal success.

To learn more about how Yoram might make a difference in your organization, call him at 858.356.6751 or email [email protected].