Wednesday, October 5, 2022

Government Home Refinance Stimulus Package

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Supporting Canadian Business Through The Canada Account

SERIOUSLY!! 4TH Stimulus Check Update & Debt Ceiling + Government Shutdown & Stimulus Package Update

The government is changing the Canada Account so that the Minister of Finance would now be able to determine the limit of the Canada Account in order to deal with exceptional circumstances. The Canada Account is administered by Export Development Canada and is used by the government to support exporters when deemed to be in the national interest. This will allow the government to provide additional support to Canadian companies through loans, guarantees or insurance policies during these challenging times.

Fact Sheet: Biden Administration Announces Additional Actions To Prevent Foreclosures

These options augment additional COVID protections HUD published last month. These included the foreclosure moratorium extension, forbearance enrollment extension, and the COVID-19 Advance Loan Modification: a product that is directly mailed to eligible borrowers who can achieve a 25% reduction to the P& I of their monthly mortgage payment through a 30-year loan modification. HUD believes that the additional payment reduction will help more borrowers retain their homes, prevent future re-defaults, help more low-income and underserved borrowers build wealth through homeownership, and assist in the broader COVID-19 recovery.

Additional AssistanceIn addition to these new opportunities for borrowers, agencies across the federal government are also taking other steps to support borrowers as our economic and public health recovery continues.

Giving Borrowers the Information They Need to Understand their OptionsThese new loan modification and payment reduction options will only give borrowers the relief they need if borrowers have the information to understand their options.

Borrowers should contact their servicer or housing counselor as soon as possible to learn more about the options available.

For borrowers not currently in forbearance, there is still an opportunity to access relief.

Pros And Cons Of Refinancing Second Mortgages

here are a number of pros and cons to consider when it comes to refinancing second mortgages.

Pros:

  • Change your existing loan rate and term: If interest rates have dropped, you may want to consider refinancing to take advantage of new rates.
  • Lower monthly payments: Lower interest rates may also mean lower monthly payments on your house.
  • Allow you to switch to a fixed interest rate: This is good for those who are at a variable rate and would want a fixed rate due to rising interest rates.
  • Consolidate debt: Refinancing your second mortgage will give you access to more funds, depending on your homes equity, that you can then use to consolidate high-interest debt, such as credit card debt or student loans.

Cons:

  • Consider the extended life of the loan: If you refinance a second loan, you will usually be prolonging the life of the loan and, therefore, be making payments longer.
  • Cost: Refinancing can be costly, as you will need to pay, at minimum, an appraisal fee, as well as closing costs.

Summary

Refinancing a second mortgage may be the right option for you if you are seeking a more favorable interest rate or lower monthly mortgage payments. Refinancing a second mortgage is similar to refinancing a first mortgage you will want to have a good credit score, employment history, and debt-to-income ratio to qualify for the best interest rates.

Talk to an expert before pursuing a refinancing of a second mortgage to ensure that it is the best choice for you.

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What Is An Economic Stimulus Package

Were here to help! First and foremost, SoFi Learn strives to be a beneficial resource to you as you navigate your financial journey.Read moreWe develop content that covers a variety of financial topics. Sometimes, that content may include information about products, features, or services that SoFi does not provide.We aim to break down complicated concepts, loop you in on the latest trends, and keep you up-to-date on the stuff you can use to help get your money right.Read less

An economic stimulus package is a set of financial measures put together by central bankers or government lawmakers with the aim of improving, or stimulating, an economy thats struggling.

Individuals in the US during the past two decades have witnessed two major periods when stimulus packages were used to boost the economy: first, after the 2008 financial crisis, and second, following the 2020 outbreak of the Covid-19 pandemic.

While viewed by some as key to reviving growth, economic stimulus packages are not without controversy. Heres a closer look into how they work, the different types of stimulus packages, as well as their pros and cons.

Mortgage Assistance And Your Rights

Trinity Accountants Cairns

Scammers target desperate homeowners looking to avoid foreclosure and stay in their homes. These scammers promise theyll get changes to your loan so you can keep your home. But they want you to pay them an upfront fee before giving you any services or getting any results. Dont do it. Its illegal for a company to charge you upfront for promises to help you get relief on paying your mortgage. If youre working with a lawyer, make sure theyre licensed in the state where you live and are reputable.

If a company offering help with your mortgage debt doesn’t follow these rules, it could be trying to scam you. Heres what to know about your rights.

  • You don’t have to pay any money until the company delivers the results you want. The Mortgage Assistance Relief Services Rule says it’s illegal for a company to charge you a penny until it’s given you a written offer for a loan modification or other relief from your lender and you accept the offer.
  • The company must disclose key information to you. If you decide to accept your lenders offer, the company must
  • give you a document from your lender showing the changes to your loan
  • clearly tell you the total fee the company will charge you for its services
  • warn you that you could lose your home and damage your credit if you stop paying your mortgage
  • The companys ads and telemarketing pitches must clearly say
  • theyre not associated with the government, and their services havent been approved by the government or your lender
  • Recommended Reading: Irs Stimulus Payments Check Status

    Mortgage Relief During Covid

    Connecticut Homeowners:If you are experiencing financial hardship due to COVID-19, the federal government is offering relief options to homeowners through the recently passed CARES Act. In addition, for those borrowers who do not qualify, many banks and credit unions in Connecticut are offering relief consumers may qualify for. Please read the information below provided carefully, in order to determine which option meets your needs.Watch this helpful video by the Consumer Financial Protection Bureau: CARES Act Mortgage Forbearance: What You Need to Know

    If you are able to pay your mortgage, continue to pay as usual.

    If you cannot pay your mortgage, immediately contact your mortgage servicer or financial institution. Please note that mortgage servicers are getting a lot of calls from homeowners experiencing difficulties due to the pandemic, and wait times are much longer than usual. Be prepared to wait, and also check your companies website for online options.

    What options do you qualify for?

    Your mortgage relief options depend on who owns or backs your mortgage.

    Find out if your mortgage is federally backed. The majority of mortgage loans in the state are owned by Fannie Mae, Freddie Mac or guaranteed by other federal agencies like the Federal Housing Authority or the U.S. Department of Veterans Affairs, which are entities sponsored by the federal government. All these entities have options for homeowners impacted by the Coronavirus.

    If your mortgage is federally-backed:

    Previous Economic Stimulus Legislation

    Perhaps the most sweeping stimulus bill ever created in the United States was signed into law by President Franklin Delano Roosevelt on April 8, 1935.

    The Works Progress Administration came out of the New Deal, ultimately employing 11 million workers to build San Franciscos Golden Gate Bridge, LaGuardia Airport in New York, Chicagos Lake Shore Drive, about 100,000 other bridges, 8,000 parks, and half a million miles of roads, including highways.

    Another agency, the Tennessee Valley Authority, collaborated with other agencies to build more than 20 dams, which generated electricity for millions of families in the South and West.

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    Mortgage Assistance Programs: Covid

    Several mortgage relief options may be offered. The type of loan you have, the owner or investor requirements of those backing the loan, and the servicer all factor in when determining the agreement youre offered.

    • Pause Payment Agreement: Your payments are suspended for up to 180 days but must be paid back in full when payments resume.
    • Mortgage Payment Reduction: The servicer agrees to reduce the monthly payment for several months. Once full payments resume, you have a specific period of time to repay the amount that was reduced. Interest accrues until the delinquent amount is paid in full.
    • Payback at End of Mortgage: The amounts that were paused are tacked on to the end of your mortgage loan period. Or, the lender issues a second loan for the amount delinquent and considers the repayment a balloon payment. Both loans are due in full at the end of the mortgage period or when the property sells.

    If You Are Behind On Your Mortgage Payments

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    Do not abandon your property, and make sure you respond to inquiries from your lender. If you abandon your property or are unreachable by your lender for more than 90 days, they can foreclose.

    If you are overwhelmed by your options, contact a HUD-approved housing counselor. They are located in every state and will work with you free of charge to help you prevent foreclosure.

    Also Check: Status Of My Stimulus Check

    Hiro Eligibility: Qualify For Mortgage Relief And A Lower Interest Rate

    The HIRO qualifications are relatively simple, but they are important. You may be eligible for HIRO if:

    • Your current mortgage loan is owned by Fannie Mae*
    • Your loan must have been originated after October 1, 2017
    • At least 15 months have passed from the note date of the existing loan to the note date of the new home loan
    • You have made all your payments on time in the last 6 months
    • Your mortgage balance is 97.1% or higher as a percentage of your homes market value, for a one-unit, owner-occupied dwelling

    *You may not even know that your mortgage is owned by Fannie Mae. If youre unsure, use this lookup tool on the Fannie Mae website.

    If you meet these conditions you are very likely to have access to lower rates but you need to act now before rates go up. Speak with your mortgage lender about relief options.

    How To Request Homeowner Assistance Funds

    Homeowner assistance funds are in the process of being distributed to states for redistribution to homeowners. The U.S. Department of the Treasury has provided guidance for states to use in developing their individual HAF plans.

    You will request funds from your state after your states HAF plan has been approved and its system is up and running. Meanwhile, the National Council of State Housing Agencies Homeowner Assistance Fund webpage features a map showing the status of each states HAF to date.

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    Who Qualifies For Fha Cash

    An FHA cash-out loan allows homeowners with lower credit scores or a less than impressive debt-to-income ratio to access the equity of their home at a current low rate.

    The basic requirements to qualify for an FHA cash-out refinance are:

    • The home mustve been refinanced but be your primary residence, and you must have lived in the home for at least 12 months prior to applying for the loan
    • You must have made on-time mortgage payments for the past 12 months prior to applying for the loan

    These are the basic requirements, but there might be additional requirements depending on your circumstances, such as your credit score.

    FHA loans usually require a debt-to-income ratio of 43% or less, but different factors may affect this, such as a high credit score or high home equity.

    As mentioned, your current mortgage does not have to be an FHA loan to qualify for an FHA cash-out refinance.

    S To Take Before You Hire A Lawyer

    An overview for small businesses of the governments ...

    A reputable lawyer doesnt guarantee results, no matter what your circumstances.

    Before you hire someone who claims to be a lawyer , or someone who claims to work with lawyers, ask relatives, friends, and others you trust for the name of a lawyer with a proven record of helping homeowners facing foreclosure.

    Get the name of each lawyer wholl be helping you, the state or states where lawyers are licensed, and the lawyers license number in each state. Your state has a licensing organization or bar that monitors lawyers conduct. Call your state bar or check its website to see if a lawyer you’re thinking of hiring has gotten into trouble. The National Organization of Bar Counsel has links to your state bar. Get in writing specific information about the work the lawyer or firm will do for you, including the cost, and the payment schedule

    If you decide to hire a lawyer, stay in touch with them and keep a file with a record of your conversations, letters, emails, texts, and paperwork.

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    Western Australian Government Stimulus

    The Western Australian Government has announced a $607 million stimulus package, which includes the freezing of household bills.

    Bills will be frozen until ‘at least’ July 2021.

    This includes the charges of electricity, water, public transport fares and motor vehicle charges.

    This is estimated to cost more than $400 million.

    Part of this stimulus package also includes 20 days’ COVID-19 – coronavirus – leave for all public servants.

    This includes leave for those who have contracted the virus, anyone who needs to care for someone, someone who is required to self-isolate, or someone who cannot access schools/daycare arrangements.

    In addition, the Energy Assistance Payment – a rebate given to concession card holders – will be doubled to $600.

    Premier Mark McGowan also said the Government will spend $114 million to help small and medium sized businesses.

    “We can afford to do these types of measures because we’ve got the budget under control,” he said in a press conference on 16 March.

    Payroll tax cuts will be brought forward to 1 July., and small businesses will also receive a one-off payment of $17,500.

    Biden Signed $10 Billion In Mortgage Help For Homeowners Do You Qualify

    Millions are still at risk of losing their homes as a result of the economic crisis fueled by the pandemic.

    More than 10 million U.S. homeowners are behind on their mortgage payments and are experiencing “housing insecurity,” according to census data. If you’re in that group and your debt is piling up, the White House set aside $10 billion in the recent COVID relief package to help Americans pay their housing costs.

    Efforts are underway to get that cash to people who need it most, though experts have warned that the rollout may take some time.

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    Covid Stimulus Programs Overview

    Since March 2020, homeowners have had certain protections under the CARES Act.

    Originally set to expire at the end of December 2020, these protections have been extended through the beginning of 2021 to continue supporting homeowners affected by the pandemic.

    Current mortgage relief programs for conventional loans and governmentbacked loans are as follows:

    Foreclosure moratoriums

    Currently, mortgage companies cannot start foreclosure proceedings against homeowners who are unable to make home loan payments.

    • For conventional mortgages, lenders cannot start a foreclosure until at least July 31, 2021
    • For FHA, VA, and USDA mortgages, lenders cannot start foreclosure proceedings until at least July 31, 2021

    Mortgage loan forbearance

    Homeowners who are unable to pay their mortgages due to COVIDrelated financial hardship can opt into a forbearance plan, which temporarily pauses mortgage payments.

    • Homeowners with conventional loans can forbear their mortgages for up to one year. Homeowners who were in a CARES Act forbearance plan as of February 28, 2021, may ask for an additional 3 months of forbearance, for 15 months total
    • Homeowners with FHA, VA, and USDA loans can forbear their mortgages for up to 18 months . Homeowners must request initial forbearance before June 30, 2021

    Even for the loan types listed above, specific mortgage relief programs and requirements can vary by loan servicer.

    Check with your own servicer to find out what type of loan relief you qualify for.

    How Covid Mortgage Modifications Work

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    For homeowners struggling to pay the mortgage, soaring home values offer one way out: With the U.S. housing market faces an extreme shortage of homes for sale, you could sell your home and become a renter. If thats not an ideal choice for you, the federal mortgage system says its offering lower rates and longer terms to slash payments and let homeowners keep their homes. The rundown:

    The reductions apply only to principal and interest, not to other costs that might be combined with your mortgage payment, such as homeowners insurance and property taxes.

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    Mortgage Stimulus Program And Other Good News For Homeowners

    For many, theres never been a better time to be a homeowner. Home prices are rising very quickly and, even if youre struggling to keep up with payments, various mortgage refinance programs are standing by to help you out.

    Mortgage rates are near all-time lows and homeowners could stand to save significantly on their monthly payments. But what if youre blocked from refinancing because your mortgage balance is close to your homes market value or is even higher? Well, there may be good news for you, too.

    Fortunately, home values have been rapidly rising across the country. Fewer and fewer homeowners are underwater.

    As a result, many homeowners may be eligible to refinance, even without a special program like HIRO or FMERR. Its worth checking your refinance eligibility to determine whether you could benefit from low-interest rates and a reduced monthly payment.

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