The COVID-19 pandemic has hit individuals, families and businesses hard.
It created a negative economic ripple effect that we can all feel. We as a community understand the importance of individuals and families not to lose their homes to foreclosure during times like these.
We have all seen the thousands of homes here in our city and state that were lost after the great recession and we cannot afford to have this happen again. It is a traumatic process which, in the worst case scenario, can increase the number of homeless people in our community and put further strain on the limited social services.
Foreclosures also have a negative impact on neighborhoods. Homes can remain empty and become problem objects, creating public safety issues and costing the city an exorbitant amount of money to maintain. When foreclosure takes place, everyone loses. According to the Joint Economic Committee of the U.S. Congress, the average foreclosure costs homeowners, neighbors, lenders, and local governments $ 77,934. Lenders lose an average of 12% to 19% of home value in foreclosure, spending about $ 50,000 in the process. The social and economic consequences of foreclosure can and must be avoided by proactively helping homeowners now.
It may be light at the end of the tunnel of this devastating pandemic, but there are still thousands of homeowners in our city and state who are unemployed or underemployed because businesses are economically stressed due to closings and restrictions in a country try to slow the spread of the virus. Many of these families have defaulted on their mortgage payments and continue to struggle. It can be a difficult and confusing journey to work with a mortgage servicer to negotiate a training plan to save your home.
Contrary to popular belief, forbearance is not always the best solution for a homeowner, and it is better, if possible, to avoid crime altogether. This is why we as a city, state, and municipality need to come together to provide emergency mortgage funds that help families whose incomes have been negatively impacted by COVID-19 pay their mortgage payments to prevent crime and default avoid.
Homewise has been working with the City of Albuquerque and other partners across NM to raise funds and raise awareness of this critical issue.
This support is available to low-income households in Albuquerque. Homeowners struggling to pay their mortgage due to a loss of income due to the COVID-19 crisis can apply to Homewise for payments for up to three months (maximum $ 1200 per month) to recover from their mortgage.
We believe that this help could make all the difference in keeping homeowners in their homes during these challenging times, making our future economic recovery so much faster and stronger!
We value the leadership and collaborative spirit of the City of Albuquerque – together we can help the most vulnerable in our community weather this storm. Homewise created the Emergency Mortgage Assistance Fund to help the financially most vulnerable New Mexicans continue to make their mortgage payments and keep their homes.
Support is available to all New Mexico homeowners financially affected by COVID-19 and is not limited to Homewise customers. The application process is simple and recipients can apply for up to three months of their mortgage payments to be covered.
Homeowners can apply online at Homewise.org or by calling 505-243-6566.
The Executive Desk is a guest column that offers advice, comment, or information about resources available to the New Mexico business community. To submit a column for review, email [email protected]
the executive’s desk