Many are worried about the end of their COVID-19 mortgage relief assistance, which is coming soon enough. How are they going to move forward once it ends? Many homeowners around the globe will be heavily affected once their corresponding housing or mortgage assistance ends.
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The Mortgage Relief To Homeowners Affected by COVID-19 Will Soon End
According to The Wall Street Journal, many people around the world are starting to worry since their housing or mortgage assistance for the COVID-19 pandemic is soon to end. This is especially true for many Americans, as many forms of various mortgage assistance in the country will soon end in Q1 and Q2 of this year of 2021.
The assistance provided by those relief programs has been a huge help for many American homeowners during the hardest times of the global pandemic. Unfortunately, many of those same relief and assistance programs are only designed to last for 12 months, and many are going to expire in March up to June. Many are still unemployed or are having a hard time financially rising up from the crippling blow COVID-19 has dealt with the masses.
One of the well-known relief and assistance programs created during the pandemic was the Coronavirus Aid, Relief, and Economics Security Act, commonly known as the CARES Act. This was established on the 27th of March, 2020 and the aim of this program is to help many homeowners and renters around the country. The said act provides temporaty protection from both evictions and foreclosures, while also offering them foreberance for their mortgage payments.
The CARES Act mainly protect homeowners who have mortgages from various government agencies and offices, providing assistance to their loan management and pament during the act's ruunign lifetime. Listed below are those said government agencies and offices that are covered by the CARES Act:
- Fannie Mae
- Freddie Mac
- U.S. Department of Veteran Affairs (VA)
- Federal Housing Administration (FHA)
- U.S. Department of Agriculture
Do take note that under FHA, it includes other related things such as home equity conversion, reverse mortgages, and mortgages under the Indian Home Loan Guarantee program.
Just like in any other government program, a homeowner can be only be protected the said act if they are fully qualified for the said program. They will undergo several steps and processes before they can fully avail the services and protection the CARES Act provides.
President Biden's New Initiative Called American Rescue Plan
Although many relief and assistance programs like the CARES Act will end soon unless intervened, there is new hope among homeowners and others heavily affected by the said pandemic. According to The White House, newly-elect President Joe Biden has recently announced his American Rescue Plan.
The recently announced American Rescue Plan is an Emergency Legislative Package that aims to accomplish several things, which are listed below:
- Fund various vaccinations
- Provide immediate & direct relief for affected families
- Supporting struggling communities
It will be a major two-step plan that will target the recovery of America's economy by investing in it more than ever. Doing so will generate more jobs for the masses, which in turn help to have a stable source of income as the world recovers from the pandemic.
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