Are you a landlord with rental property and wondering what you should be doing with your tenants during this covid-19 epidemic? In this video, I discuss what I’m doing for my clients with rental properties as well as some options you may consider if your tenant is unable to pay their rent due to the effect of the coronavirus.

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What is the first thing you should do as a landlord during covid-19?

The first step as a landlord is to reach out to your tenant and have a conversation. Communication is key and that’s no different during this crisis. Let your tenants know that you understand what is going on and that you are there to work with them (show empathy). From there find out if they have been affected and how that might impact them in paying their rent.

Also, make sure to let your tenants know that you also have a mortgage to pay and that you really need their help during this time. Lastly, make sure you let them know that any missed rent will have to be paid and that it’s not going to just go away.

What should you do if your tenants can’t pay their rent?

If your tenants can’t pay their rent, try and work on a solution that benefits both parties. If you are in a position to not let them pay the rent, then maybe consider that as a first option. If their payment is crucial in being able to make your own monthly mortgage payment then try and see if they are able to pay a partial amount (anything at all) and you can either use part of their security deposit as the difference in the rent or you can add it to monthly payments going forward.

You also have the option to consider mortgage forbearance with your current lender. Let them know that your tenant isn’t able to pay their monthly lease and therefore you don’t have the funds to pay your mortgage. Your lender should work with you to set up forbearance (additional videos below on that process) until your tenant is in a position to start paying rent again.

Whatever you decide, make sure that you put it in writing with your tenant through not only email but certified mail to have a paper trail of the conversation, just in case.

What is a mortgage forbearance?

A mortgage forbearance agreement is an agreement made between a mortgage lender and delinquent borrower in which the lender agrees not to exercise its legal right to foreclose on a mortgage and the borrower agrees to a mortgage plan that will, over a certain time period, bring the borrower current on his or her mortgage.

If you have additional questions about mortgage relief, mortgage forbearance or forbearance mortgage, please call me directly or comment below.

Thanks for watching.

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Have you contacted your lender and been disappointed with the mortgage forbearance options you’ve been given so far? In this video, I discuss why lenders are likely not working with homeowners at this time and why mortgage lenders could have really big issues on their hands if the government does step up with additional stimulus.

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What is a mortgage forbearance?

A mortgage forbearance agreement is an agreement made between a mortgage lender and delinquent borrower in which the lender agrees not to exercise its legal right to foreclose on a mortgage and the borrower agrees to a mortgage plan that will, over a certain time period, bring the borrower current on his or her mortgage.

Who can qualify for mortgage forbearance?

Homeowners who have lost income or their jobs due to covid-19 could be eligible to have their mortgage payments delayed or reduced for a few months. You will need to contact your lender and explain your situation to see what options are available to you at this time.

As I suggest in the video, I would continue to call and check in with your lender as I expect the options to change if the virus continues to spread and more people are effected.

What is the mortgage forbearance program?

This program is pushed by the federal government at this time to help those that have been directly impacted by the coronavirus. Homeowners who have lost income or their jobs due to covid-19 could be eligible to have their mortgage payments delayed or reduced for a few months based on what I’m currently being told but as we get more information, I’ll continue to do updates.

Can I stop making my mortgage payments?

Homeowners can’t just stop paying their mortgage payments. Homeowners will need to contact their mortgage company (the company they send their payment to each month). My understanding is that the lender will not initially require you to provide any documentation but could in the future. You are not going to have to send in a ton of paper like the last financial crisis according to The lender will work with them to figure out a plan of either delaying payments or setting up a payment plan. Payments put off while a mortgage is in forbearance need to be made once the period ends. Some lenders expect a lump-sum payment, while others offer repayment plans.

How will the mortgage relief program affect my credit?

Fannie Mae and Freddie Mac are directing lenders not to report people to the credit bureaus for late or missed payments if they are in one of these forbearance plans.

If you have additional questions about mortgage relief, mortgage forbearance or forbearance mortgage, please call me directly or comment below.

Thanks for watching.

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Have you wondered what is in the $2.2 Trillion Cares Act that was recently passed? In this video, I discuss the Cares Act highlights in more detail which includes benefits for self employed, unemployed as well as small business. In addition, I give more information on mortgage forbearance, ira distributions and small business loans.

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What is the CARES Act?

The Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, is a law meant to address the economic fallout of the 2020 coronavirus pandemic in the United States. It was introduced in the United States Senate by Majority Leader Mitch McConnell.

Who can benefit from the CARES Act?

Anyone that has been affected by covid-19 could benefit from the stimulus package including independent contractors, self-employed individuals and furloughed workers.

Where can I find the print out that you mentioned in the video?

https://resources.buffiniandcompany.c…

Cares Act Highlights

CASH REBATES • $1,200 per Individual plus $500 per qualifying Child. • Phase-out of the rebates begins at $75,000 for Individuals ($150,000 for Joint Returns). • The rebate is considered an advance tax refund against 2020 income taxes. • Rebate amounts are based upon the Adjusted Gross Income (AGI) reported on the most recent tax return filed (2019 or 2018).

UNEMPLOYMENT • Federal funding is ADDING $600 per week (for up to 4 months). • It is also available to Independent Contractors, SelfEmployed Individuals and Furloughed Workers. • After state benefits expire, the Federal Government will fund up to 13 weeks of unemployment benefits.

PAYROLL TAX DEFERRAL • Can defer the employer portion of the 6.2% Social Security tax on wages paid March 27, 2020 through December 31, 2020. • 50% of the deferral must be paid by December 31, 2021 and the remaining 50% by December 31, 2022. • This benefit is available to the Self-Employed as well, but only the employer portion can be deferred. • CAN’T Defer these Payroll Taxes if you receive a Loan through the Paycheck Protection Program (see below).

RETIREMENT PLANS • May take up to $100,000 in distributions without incurring the 10% early distribution tax if certain criteria are met. • Federal income tax on the distributions can be spread over 3 years, beginning with 2020. • If the distribution is repaid into the Retirement Plan within 3 years, there are no Federal taxes (any taxes paid are eligible to be refunded). • Retirement Loans – maximum amount is doubled (maximum loan is $100,000).

STUDENT LOANS • Payments of principal and interest for certain Federal student loans are suspended through September 30, 2020.

FEDERALLY BACKED MORTGAGES • Borrowers may submit a forbearance request if they are experiencing financial hardship. • Lenders must grant the request without penalties, fees, or interest (beyond what would be due if no payments had been missed) for up to 180 days (subject to another 180 day extension at the borrower’s request). • Foreclosure action is prohibited for 60 days beginning March 18, 2020.

SBA PAYCHECK PROTECTION PROGRAM (PPP) • Available on first-come, first-served basis to Small Businesses and Sole Proprietorships beginning April 3, 2020. • Independent Contractors and the Self-Employed must wait to apply until April 10, 2020. • All $349 Billion is expected to be taken FAST, within days. • Loan Amount is based upon Payroll Costs x 2.5 months. • Cash can be received as soon as 24 hours after the application is made. • No Collateral or Personal Guarantees are required. • Loan can be forgiven (completely or partially) if used towards Payroll Costs, Rent, Utilities and Mortgage Interest over the following 8 weeks. • Payroll costs must account for at least 75% of the forgiven amount. • Amount forgiven is a non-taxable cancelled indebtedness. • Loan interest rate is 1.0% with a 2-year term (no interest is due if forgiven in 60-days). • Payments are deferred for 6-months. • No fees to take out the loan.

SBA ECONOMIC INJURY DISASTER LOAN (EIDL) • Get a quick advance (grant) of up to $10,000 to cover immediate payroll, mortgage, rent and other specified expenses. • Can get a loan for up to $2 Million to use on payroll and other defined operating expenses.

NET OPERATING LOSSES (NOLS) • NOLs incurred in 2018, 2019 and 2020 can now be carried back 5-years.

SOURCES: CARES Act SBA Website provides details on the PPP and EIDL U.S. Senate Committee on Small Business & Entrepreneurship, Buffini and Company

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If you’re considering doing mortgage forbearance due to covid-19 ,make sure you watch this video so you know what to ask your lender to know how it will impact your credit score

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Is mortgage forbearance bad for your credit?

Traditionally speaking, yes mortgage forbearance can be bad for your credit but in the case of covid-19, guidelines issued by the Federal Housing Administration and mortgage giants Fannie Mae and Freddie Mac clearly state that banks and loan servicing companies shouldn’t report borrowers who are using disaster forbearance or similar programs as delinquent to the credit bureaus.

The problem with this is that lenders and loan servicing companies are far from perfect. Let’s just say, the lender or the firm that processes the monthly payments may promise temporary debt relief but then fail to update its files. Or, it may be unclear when the mortgage payments are to resume. Either way, the borrower could get reported as delinquent and their credit score could take a hit. To avoid any such issue, make sure you get the forbearance mortgage agreement in writing and fully understand its terms.

When is my mortgage payment considered late?

For credit reporting purposes, your payment isn’t considered late in normal circumstances until after 30 days. For example, if your mortgage payment is due on May 1st but you make the payment on May 15th or May 29th, that would not affect your credit in a negative way. With that said, you have a bit of a grace period before it affects you negatively.

What should you do if you know you will be late on your mortgage payment?

Call your lender and have a conversation. Tell them exactly what is going on so there are no surprises. Your lender will work with you if you have been affected by covid-19

What is a mortgage forbearance?

A mortgage forbearance agreement is an agreement made between a mortgage lender and delinquent borrower (or potentially delinquent in this case) in which the lender agrees not to exercise its legal right to foreclose on a mortgage and the borrower agrees to a mortgage plan that will, over a certain time period, bring the borrower current on his or her mortgage.

What Is a Credit Score?

A credit score is a statistical number that evaluates a consumer’s creditworthiness and is based on credit history: repayment history, number of open accounts and total levels of debt. Lenders use credit scores to evaluate the probability that an individual will repay loans in a timely manner.

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This is my latest update on FHA Mortgage Forbearance options that were just released today for those affected by covid-19. The Department of Housing and Urban Development announced Thursday that the Federal Housing Administration is rolling out a “tailored set of mortgage payment relief options” for FHA mortgage borrowers who are being affected by the coronavirus.

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What is a mortgage forbearance?

A mortgage forbearance agreement is an agreement made between a mortgage lender and delinquent borrower in which the lender agrees not to exercise its legal right to foreclose on a mortgage and the borrower agrees to a mortgage plan that will, over a certain time period, bring the borrower current on his or her mortgage.

How will the FHA mortgage relief work?

In addition to special COVID-19 forbearance, FHA is also rolling out a new program (COVID-19 National Emergency Partial Claim) that will allow borrowers to hold off on paying the full amount of their forbearance period until their mortgage is paid off.

Borrowers are given an interest-free ( I mis-stated this in the video) subordinate mortgage that they do not have to pay off until their first mortgage is paid off.

Who can qualify for mortgage forbearance?

Borrowers with a financial hardship that makes them unable to pay their mortgage due to the COVID-19 National Emergency, mortgage lenders/servicers must extend deferred or reduced mortgage payment options – called forbearance – for up to six months, and must provide an additional six months of forbearance if requested by the borrower,” HUD and the FHA said Thursday.

FHA is also rolling out a new program that will allow borrowers to hold off on paying the full amount of their forbearance period until their mortgage is paid off.

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How has the housing market been affected by covid-19? What has changed since our last residential real estate report at the beginning of March 2020? In this video, I discuss our local housing market in more detail and also talk about the federal mortgage relief that is being offered to people who have been affected by the coronavirus from mortgage forbearance to the $2 Trillion Economic Stimulus Package that was recently passed.

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What has changed since our last Real Estate Market Report?

At the start of March our Real Estate market was in beast mode and on pace to have one of our best years ever but then just a few weeks in that all changed with the introduction of covid-19.

The first few weeks of covid-19 didn’t impact the housing market too much as new listings continued to come on the market along with buyers putting homes into escrow. With that said the last 2 weeks I have seen more of a shift in the real estate market with a drop in inventory as well as buyer demand.

The drop in buyer demand could be attributed to a few factors. Not only have buyers likely pulled out of the home buying process due to uncertainty from covid-19 but also there has been a rise in interest rates during this same time which has likely put some buyers in a position where they no longer qualify for the same amount as before.

The lack of inventory has been an ongoing issue within our housing market for a few years and concerns with covid-19 is only making it worse with homeowners scared to list their homes during this time of uncertainty. That coupled with homes being removed from the market at the same time has caused our inventory levels to drop significantly in the last few weeks.

In addition to the buyer demand and inventory issues, we also went through a period where real estate in california wasn’t considered an essential business which meant that we shouldn’t be doing real estate related activities like open houses, showing property, etc…..during the shelter in place. While that has changed as of this week, my company, Coldwell Banker Realty, is still stressing that we should hang tight with regards to doing business as usual.

With all of that said, our local housing market has pretty much stalled in the last few weeks. There are still deals going into escrow and listings still coming on the market but the majority of buyers and sellers seem to be waiting on the sidelines to figure out what is going to happen before moving forward during this time of crisis.

Will the housing market crash?

My personal opinion is that the real estate market will NOT crash. I do expect our economy will suffer with the loss of jobs and spending and we’ll likely see housing pull back some in the interim but I expect that as we move out of the covid-19 concerns, our housing market will remain strong for the foreseeable future. I don’t mean that we are going to see the appreciation or gains that we’ve seen over the last few years but with low inventory and low rates, our housing market should recover at a faster pace than most industries.

What is a mortgage forbearance?

A mortgage forbearance agreement is an agreement made between a mortgage lender and delinquent borrower in which the lender agrees not to exercise its legal right to foreclose on a mortgage and the borrower agrees to a mortgage plan that will, over a certain time period, bring the borrower current on his or her mortgage.

Who can qualify for mortgage forbearance?

Homeowners who have lost income or their jobs due to covid-19 could be eligible to have their mortgage payments delayed or reduced for a few months. You will need to contact your lender and explain your situation to see what options are available to you at this time.

As I suggest in the video, I would continue to call and check in with your lender as I expect the options to change if the virus continues to spread and more people are effected.

Do you have questions about the local real estate market? If so, please comment below or contact me directly as I’d love the opportunity to help.

Thank you for watching.

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This is my latest video updating you on mortgage forbearance and what programs that are currently available for most homeowners who have been affected by covid-19. In this video, I discuss the options that I’ve been made aware of from reaching out to my current lender/servicer as well as from my viewers (you guys).

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First off, a huge shout out and thank you to all of those that have commented on my videos, emailed me and contacted me through Instagram with the different options your lender is providing to you during the covid-19 crisis.

What is a mortgage forbearance?

A mortgage forbearance agreement is an agreement made between a mortgage lender and delinquent borrower in which the lender agrees not to exercise its legal right to foreclose on a mortgage and the borrower agrees to a mortgage plan that will, over a certain time period, bring the borrower current on his or her mortgage.

Who can qualify for mortgage forbearance?

Homeowners who have lost income or their jobs due to covid-19 could be eligible to have their mortgage payments delayed or reduced for a few months. You will need to contact your lender and explain your situation to see what options are available to you at this time.

As I suggest in the video, I would continue to call and check in with your lender as I expect the options to change if the virus continues to spread and more people are effected.

How can I qualify for mortgage forbearance?

The easiest way to see if you qualify for forbearance mortgage is to reach out to the lender that you currently make your monthly payments to and let them know you have been affected by coronvirus (covid-19).

The easiest way is likely online but you can also call your lender to have this conversation. Keep in mind, that it’s likely going to be a very long wait on the phone but speaking to someone could better for having your questions answered versus doing an online application. In theory, everyone that has been affected will qualify.

What is the mortgage forbearance program?

This program is pushed by the federal government at this time to help those that have been directly impacted by the coronavirus. Homeowners who have lost income or their jobs due to covid-19 could be eligible to have their mortgage payments delayed or reduced for a few months based on what I’m currently being told but as we get more information, I’ll continue to do updates.

Can I stop making my mortgage payments?

Homeowners can’t just stop paying their mortgage payments. Homeowners will need to contact their mortgage company (the company they send their payment to each month). My understanding is that the lender will not initially require you to provide any documentation but could in the future. You are not going to have to send in a ton of paper like the last financial crisis according to The lender will work with them to figure out a plan of either delaying payments or setting up a payment plan. Payments put off while a mortgage is in forbearance need to be made once the period ends. Some lenders expect a lump-sum payment, while others offer repayment plans.

How will the mortgage relief program affect my credit?

Fannie Mae and Freddie Mac are directing lenders not to report people to the credit bureaus for late or missed payments if they are in one of these forbearance plans.

If you have additional questions about mortgage relief, mortgage forbearance or forbearance mortgage, please call me directly or comment below.

Thanks for watching.

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This is an update to the “What is Mortgage Forbearance – Can I qualify due to COVID-19” video that I did a few days ago as more light has been shed on the mortgage forbearance options being offered by lenders/banks at this time. In this video, I discuss questions that I’m getting from viewers about how to proceed as well as discuss in more detail the 2 different programs that most lenders are offering at this time.

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What is a mortgage forbearance?

A mortgage forbearance agreement is an agreement made between a mortgage lender and delinquent borrower in which the lender agrees not to exercise its legal right to foreclose on a mortgage and the borrower agrees to a mortgage plan that will, over a certain time period, bring the borrower current on his or her mortgage.

Who can qualify for mortgage forbearance?

Homeowners who have lost income or their jobs due to covid-19 could be eligible to have their mortgage payments delayed or reduced for a few months. You will need to contact your lender and explain your situation to see what options are available to you at this time.

As I suggest in the video, I would continue to call and check in with your lender as I expect the options to change if the virus continues to spread and more people are effected.

What is the mortgage forbearance program?

This program is pushed by the federal government at this time to help those that have been directly impacted by the coronavirus. Homeowners who have lost income or their jobs due to covid-19 could be eligible to have their mortgage payments delayed or reduced for a few months based on what I’m currently being told but as we get more information, I’ll continue to do updates.

Can I stop making my mortgage payments?

Homeowners can’t just stop paying their mortgage payments. Homeowners will need to contact their mortgage company (the company they send their payment to each month). My understanding is that the lender will not initially require you to provide any documentation but could in the future. You are not going to have to send in a ton of paper like the last financial crisis according to The lender will work with them to figure out a plan of either delaying payments or setting up a payment plan. Payments put off while a mortgage is in forbearance need to be made once the period ends. Some lenders expect a lump-sum payment, while others offer repayment plans.

How will the mortgage relief program affect my credit?

Fannie Mae and Freddie Mac are directing lenders not to report people to the credit bureaus for late or missed payments if they are in one of these forbearance plans.

If you have additional questions about mortgage relief, mortgage forbearance or forbearance mortgage, please call me directly or comment below.

Thanks for watching.

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Have you been affected by coronavirus (covid-19) and need mortgage relief? Federal regulators are ordering lenders to offer homeowners mortgage forbearance up to 12 months. In this video, I discuss what we know so far and how to qualify for mortgage forbearance during this difficult time.

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What is a mortgage forbearance?

A mortgage forbearance agreement is an agreement made between a mortgage lender and delinquent borrower in which the lender agrees not to exercise its legal right to foreclose on a mortgage and the borrower agrees to a mortgage plan that will, over a certain time period, bring the borrower current on his or her mortgage.

How does mortgage forbearance work?

This program is designed to help those that have been directly impacted by the coronavirus. Homeowners who have lost income or their jobs due to covid-19 could be eligible to have their mortgage payments reduced or suspended for up to 1 year. It all depends on their particular circumstances.

Homeowners can’t just stop paying their mortgage payments. Homeowners will need to contact their mortgage company (the company they send their payment to each month). My understanding is that the lender will not initially require you to provide any documentation but could in the future. You are not going to have to send in a ton of paper like the last financial crisis according to The lender will work with them to figure out a plan of either delaying payments or setting up a payment plan. Payments put off while a mortgage is in forbearance need to be made once the period ends. Some lenders expect a lump-sum payment, while others offer repayment plans.

Fannie Mae and Freddie Mac are directing lenders not to report people to the credit bureaus for late or missed payments if they are in one of these forbearance plans.

If you have additional questions about mortgage relief or mortgage forbearance, please call me directly or comment below.

Thanks for watching.

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Are interest rates going up or down right now? What are interest rates today? In this video, I discuss the differences between the fed funds rate and interest rates and how high interest rates affect the economy

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What is the fed funds rate?

The fed funds rate is the interest rate target at which banks borrow and lend excess reserves from one another on an overnight basis. A committee of the Federal Reserve sets a target federal funds rate eight times a year, based on prevailing economic conditions. Currently the federal funds rate is set to .0 – .25%.

What is an interest rate in lending?

An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed. The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent, deposited or borrowed.

Did the feds cut the interest rate?

Yes, the federal reserve did an emergency cut to .0 – .25% to help stimulate the economy during the coronavirus epidemic.

Fed funds rate vs interest rates

The two aren’t directly correlated but historically interest rates have followed the trend of the fed funds rate. Interest rates are tied to something called MBS’s (mortgage backed securities). Currently, interest rates have risen while the fed funds rate has been lowered to zero.

Why are interest rates going up?

The main reason that interest rates have gone up has to do with capacity issues at banks/lending institutions because of the recent influx of refinances/purchases due to really low interest rates. These banks have received way more volume than they thought and aren’t in a position to be able to handle it. That coupled with the fact that MBS’s are being priced well on the secondary market causing interest rates to rise.

Will interest rates go back down?

My feeling is that interest rates will definitely go back down likely to new lows in the next few weeks but we need to find some stability in the economy first. We need low interest rates to help stimulate the economy during this coronavirus epidemic. High interest rates affect the economy in a negative way when coming out of a global issue like we are currently experiencing and therefore I believe they have to go back lower in order to help us navigate to higher grounds.

Do you have questions about interest rates or real estate? If so, please reach out to me directly or comment below.

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