Here are the financial protections still in place for CT owners during the pandemic

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The COVID-19 pandemic has shaken the housing market in the country and in Connecticut. In Connecticut, low-income families face the risk of foreclosure, while those who lost their jobs or saw their jobs change during the pandemic may no longer be able to afford their current home.

According to previous reports from Hearst Connecticut, real estate data company Black Knight has shown that at least “one in 14 residential mortgages in Connecticut were either past due or in foreclosure in February, the 13th highest rate in the United States and well above the state before. pandemic level.

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

Assistance to UniteCT owners


In March 2021, Governor Ned Lamont announced the creation of UniteCT, a $ 235 million fund created to help homeowners in the state who may need help paying for their homes. It also helps residents pay rent and utilities. The fund is the product of a congressional stimulus package adopted in December 2020, as well as additional funds allocated as part of the US bailout.

Homeowners affected by the pandemic have several options available to them for their mortgages through this fund. According to the state’s UniteCT website, $ 10 million is allocated for homeowners mortgage relief; In addition, the fund establishes a working relationship with local financial institutions to provide mortgage forbearance and an extension for homeowners to file their property taxes.

COVID-19 mortgage relief

At the federal level, homeowners have mortgage relief options through the CARES Act, or the Coronavirus Help, Relief and Economic Security Act, enacted by President Biden in March 2021. should d ‘First contact the financial institution associated with their mortgage, according to the state’s COVID-19 Mortgage Relief website.

If a homeowner has a federally backed mortgage – which includes those “held by Fannie Mae, Freddie Mac or guaranteed by other federal agencies like the Federal Housing Authority (FHA) or the US Department of Veteran’s Affairs, which are entities sponsored by the federal government. government ”depending on the state – there are several options for assistance.

Mortgage abstention and moratorium

Federally guaranteed mortgages are eligible for 180-day forbearance, during which mortgage providers cannot charge “fees, interest or penalties in excess of expected or calculated amounts” such as whether the borrower had made the payments on time and in full. There is also a foreclosure moratorium on federally guaranteed mortgages, prohibiting any eviction, sale or other foreclosure-related proceedings until June 30, 2021.

Credit protection

Credit protection is also available from January 31, 2020 and ends 120 days after the end of the COVID-19 national emergency declaration. According to the state’s Mortgage Relief website, this credit protection “requires information providers to credit reporting agencies who agree to withholding accounts or modified payments due to COVID-19, declare a consumer’s obligations or accounts as “ current ” or as the state reported prior to hosting during the hosting period, unless the consumer becomes current. “

For homeowners with Fannie Mae or Freddie Mac mortgages, the state’s website notes that those granted forbearance to delay their monthly payments also won’t incur late fees, see foreclosures delayed, or choose add deferred payments at the end of their mortgages. . The Fannie Mae and Freddie Mac mortgages also offer a repayment plan available to those who abstain due to COVID-19, as well as extended foreclosure moratoria until June 30, 2021.

Post-abstention

FHA mortgages have the option of using a partial national COVID-19 emergency claim at the end of the forbearance period, according to the state. The partial claim helps those who resort to forbearance to “reinstate their loans by allowing managers to advance funds” on behalf of the owner and “defer repayment of those advances through an interest-free subordinated mortgage that the borrower does not have to repay until their first mortgage is paid off. “



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