September 19, 2021

MP Now News

Mortgage News

These are the financial protections still in place for CT homeowners during the pandemic

The COVID-19 pandemic has turned the real estate market in the nation and Connecticut on its head. In Connecticut, low-income families face the potential for foreclosure, while those who lost their jobs or changed jobs during the pandemic may no longer be able to afford their current homes.

After previous Hearst Connecticut reporting, Real estate data company Black Knight At least “one in 14 Connecticut residential mortgages was in default or foreclosure in February, the 13th highest rate in the United States and well above the state’s prepandemic level.

Even as the pandemic slows, there are still several COVID-specific safeguards in place at the state and federal levels designed to help current homeowners afford their homes during the pandemic.

Support for UniteCT homeowners

In March 2021, Governor Ned Lamont announced the creation of UniteCT, a $ 235 million fund set up to help homeowners in the state who may need assistance with their homes. It also helps residents pay rent and utilities. The fund is the product of a stimulus package passed by Congress in December 2020 and additional funds made available under the fund American rescue plan.

This fund gives homeowners affected by the pandemic multiple options for their mortgages. According to the UniteCT website of the state$ 10 million is earmarked for homeowner mortgage relief. In addition, the fund is building a working relationship with local financial institutions to provide mortgage forbearance and allow homeowners to extend their property tax filings.

COVID-19 mortgage relief

At the federal level, homeowners have mortgage relief options through the CARES Act or the Coronavirus Aid, Relief and Economic Security Act, which President Biden signed into law in March 2021. In order for homeowners to qualify for mortgage relief under the CARES Act, they should first contact the financial institution associated with their mortgage, according to the state COVID-19 mortgage assistance website.

When a homeowner has a federal mortgage – including those “owned by Fannie Mae, Freddie Mac, or guaranteed by other federal agencies such as the Federal Housing Authority (FHA) or the US Department of Veterans, which are federally sponsored,” according to the state – Various options are available to assist you.