The COVID-19 Crisis caught a lot of people off guard. Americans have not done well saving up money and paying down credit cards. Sometimes when tough times happen the entire system starts to move out of whack and people begin to default on their payments. This can have implications throughout the entire economic chain. Therefore, by putting in place a system that temporarily stops default actions can help shorten the default shock for homeowners and institutions.
If you have a home and are at risk of defaulting on payment you will want to pay close attention.
What is the Purpose:
The purpose is to stop the chain of default. When people are not working, using unemployment and not making much money they are not able to scrape together mortgage payments. This shortfall often leads to defaults which in turn causes cash runs and crashes. The defaults are artificially based in the crisis so ensuring people are working and/or temporarily don't have payments will help. A temporary hold/ban will stop further panic that more permanently damage the economy.
What Does It Do?
It provides 90 day forbearance on late mortgage payments, doesn't allow for reporting on your credit report (for a certain time) and temporarily stops foreclosures for 60 days.
Delta County has a number of providers that are part of the MiMortgage Relief Partnership Program. A couple of noteworthy credit unions and banks are include:
Delta County Credit Union
First Bank Upper Michigan
Peninsula Federal Credit Union
and more..... (See LIST).
What Should You Do If You are Experiencing a Hardship?
Contact your lending institution right away and they will help you.
Michigan Press Release April 23th, 2020 (Read from website):