Payment Suspension During COVID-19: What Homeowners and Renters Should…
Be wise…research to confirm. But this is very good advice from a colleague, Brett Herzer.
1. To Tenants: If the government says you don’t have to pay your rent and there’s a ban on evictions, you better do whatever you can to pay your rent. There will be major repercussions when eviction bans are lifted. Don’t think you’ll get a free ride out of this. PAY YOUR RENT! Your landlord has bills to pay too.
2. To Homeowners: If the government tells banks to stop mortgage payments, DO WHATEVER YOU CAN TO PAY YOUR MORTGAGE!. Some lenders are saying you don’t have to pay for 3 months, but in the 4th month, all four payments are due in full. Do not take a chance and not pay. Major foreclosures will come from all this. The banks didn’t help homeowners in 2008-2009 and in 2020, it’s still the same. Pay your mortgage.
3. If the utility company suspends payments, you better pay any amount you can! They are like banks, they will want their money eventually and when all this clears up, you’ll owe an exuberant bill and still won’t have any utilities. Pay whatever you can.
4. If you get a government stimulus check, this check is to help pay your bills. That means you pay your rent, your mortgage, your utilities, your insurance, your car payment, your bills. This is not for frivolous spending.
Again, check with your creditor. Vet it out. This is ‘crisis money’ to cover bills; housing, utilities, etc ‘Free’ is a fallacy….most of the time. (Love and heaven being a couple of exceptions). ?
If possible, do the opposite. Some creditors/businesses are looking at the big picture. Giving incentives for those who pay on time and/or pay more than the minimum. Worth doing some research….making some calls.
We’re in the 3rd quarter. The first half was tough. Finish strong. Be positive. Take the road less traveled….you’ll come out ahead. ?”
Source: Brett Herzer
