There’s not one person or business in the country who hasn’t been affected by the global coronavirus pandemic. The pandemic has turned entire industries on their heads and brought others to a grinding halt – and real estate is not immune.
Let’s learn more about the affect of coronavirus on real estate including how it’s changed the market for buyers and sellers, as well as what you can do if your mortgage is in danger. These might be trying times for the country, but real estate is still functioning.
The Importance of Calling your Lender
No person or entity is immune to the far-reaching effects of coronavirus. Each company, including lending institutions, has taken their own stance on CORONAVIRUS including how they can help borrowers who have hit hard times. Some mortgage companies have put payments on hold for those directly affected while others have cut their rates.
If you are facing financial hardship due to CORONAVIRUS, the most important thing you can do is call your lending institution or mortgage professional. By calling you can explain your exact situation and what can be done to help you avoid further issues.
Despite the rap home lenders get, they aren’t stone-faced executives. They understand many people are facing hardship including their neighbors. By calling, you can confirm your lender’s policy instead of lying awake at night wondering what will happen.
Tips for Buying and Selling During Coronavirus
You can’t pop into a real estate office during the pandemic, so get familiar with virtual meeting software and online appointments. While you might lose the important face-to-face interaction, you can still discuss prices, make a short list of homes, and discuss your mortgage options all over video chat. You can even electronically sign paperwork to move the real estate process forward.
Mortgage interest rates are at rock bottom. In the economic slowdown, lawmakers are encouraging Americans to spend money when they can and have incentivized home sales with the bottom of the barrel interest rates. If you’ve been on the fence about purchasing real estate or have been waiting for the ‘right moment’ – that moment is now. Purchasing a home, including meeting with real estate personnel or touring homes, will be difficult but is well worth it if you’re ready to pull the trigger.
Selling During Coronavirus
It’s a fantastic time to buy but the seller’s market has cooled off dramatically. The best tips for selling your home during the coronavirus pandemic are patience and safety. It will take longer than average to schedule viewings but most potential homeowners currently browsing are ready to buy.
Take advantage of the visits you get and sanitize all touchable surfaces before and after the tour. It’s best to leave the home into the backyard or your local park during the showing if possible.
Options for Homeowners Unable to Pay Mortgage
The pandemic has cost thousands of Americans their jobs. Many homeowners who have never missed a mortgage payment are being forced into financial hardship and are unable to pay their mortgage on normal terms. There have been stimulus payments made to most Americans, but stimulus payments can only go so far.
Forbearance and Deferment
Before you find yourself too behind on mortgage payments it’s best to consider options like deferment and forbearance. While not ideal, forbearance or deferment can help keep you from losing your property or moving into foreclosure.
Forbearance is an agreement between lender and borrower to temporarily postpone mortgage payments to avoid larger issues like foreclosure. Most forbearance options allow for a 90-day postponement window, but every lender is handling forbearance differently due to coronavirus.
Deferment is when the borrower and lender agree to move the amount owed to the end of a term, like the end of a 12-month mortgage period. Lenders Freddie Mae and Fannie Mac have already implemented deferment programs due to coronavirus that can allow up to 12 months of deferred payments.
Getting Help from Real Estate Professionals
Finding yourself underwater on your mortgage is intimidating to any homeowner but getting a real estate professional on your side can help you through any mortgage issues or help you secure the best possible outcome. Reputable professionals like Storck offer forbearance and deferment help, so you can make sure you stay in good standing with your lender.
Achieving Real Estate Goals During Coronavirus
Coronavirus has had a devastating impact on the world including many Americans’ mortgages. If you’re in danger of missing payments, it’s recommended to call your lender immediately to discuss options or use the help of real estate professionals like The Storck Team.
On the flip side, if you have the resources, now is a great time to buy due to basement interest rates. No matter if you’re buying or need help on your mortgage, use The Storck Team’s real estate professionals to get the job done.