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As many American households struggle to deal with financial challenges they have encountered as a result of the spreading coronavirus, some may be worried about making their mortgage payment this month.
Typically, mortgage payments are due at the first of the month – which is Wednesday.
But with many people out of jobs, or working reduced hours, making that payment this month may not be so easy.
If you find yourself in a situation where you cannot afford your mortgage payment, the first thing you should do is contact your lender or service provider to discuss the financial situation you are in.
“The best advice is really to get in touch with your lenders and other creditors and advise them of your situation,” Greg McBride, chief financial analyst at Bankrate.com, told FOX Business. “There are a lot of options on the table if you’re proactive and reach out. Not so much if you fall behind and they have to track you down in two months.”
The telephone number and mailing address of your mortgage servicer should be listed on your monthly mortgage statement.
Many lenders are allowing borrowers to skip payments without being charged late fees or being considered delinquent.
McBride noted that mortgage and car payments – typically two of the biggest components of the average household budget – could also be the two classes of lenders most willing to work with you on a financial solution.
Mortgage payments could also be put off temporarily through forbearance – though interest would accrue on the principal balance.
The federal government is working on other relief measures as well. Earlier this month, the government temporarily suspended foreclosure actions and evictions. Meanwhile, stimulus checks are being processed for many American households, with individuals eligible to receive as much as $1,200. Lawmakers have also ramped up unemployment insurance benefits.