Real Estate Ray's Blog: Time to Help. The Storm Clouds are Here

Time to Help. The Storm Clouds are Here

     The storm clouds are here. A few weeks ago, I would never have imagined that I would be discussing mortgage relief.  Everybody seems to be affected by the COVID 19 virus is some way or another.  Many are sick, laid off or have reduced hours and are facing some difficult decisions. I am concerned because during the Great Recession so many did not communicate with their banks and/or loan servicing companies due to fear and worry. 

House with Stethoscope

  If you are having difficulties, please call your loan servicing company or your bank.  My client called his servicer and was told that he qualified for a forbearance agreement.  He can forgo his payment for up to three months on his home loan without any penalties.  He was also told that it will not affect his credit score.  His interest will still accrue and be added to the loan balance and he will have to resume making his regular payments at the end of 90 days.  Each servicer will probably have different plans depending on the investor they service.  Most loans are owned by Fannie Mae and Freddie Mac.  Here are links for more information regarding Fannie Mae and Freddie Mac loans.

Fannie Mae Loans

Freddie Mac Loans

     HUD has also halted all new foreclosures and suspended ongoing foreclosures for 60 days.  For tenants, HUD has suspended all evictions on FHA insured single family homes.

     Just today, we received a letter from our local credit union, Golden One.  This is what they are planning to do.  They will waive all late fees.  They will allow loan deferrals of up to three months on credit card debt, auto loans and home loans.  They have also arranged for emergency loans of up to $5,000 for their members.  Please ask lots of questions for details of each program.

     If you have been impacted by our current situation with the COVID 19 virus and need help, call your servicer or your bank.  If you are a tenant, call your landlord or property manager.  I have advised family members to do the same.  You all should get some kind of help.  

     On a more personal level, my property manager sent out a letter today.  He mentioned several times that he is unsure what to do since he has never faced anything of this magnitude.  He had a lot of ideas and was asking for our input for even better solutions.  Good tenants may not be able to pay their full rent.  Property owners still have to make repairs to air conditioning, heating, plumbing, roofs, health and safety issues, etc. All need to be done in a timely manner.  I feel for the repairmen that go from home to home, apartment to apartment, building to building exposing themselves and their families, to make all the repairs.   We are all being impacted in some way, but most people want to help.  Great communication is the key.  I have already contacted my tenants and offered help.  I think others will do the same.

   My real estate career began during the Great Recession and I learned very quickly that if you ignore an issue the issue gets worse.    If you communicate quickly and courteously, a lot can be done.  I am very impressed that our government, banks, lenders, landlords and so many everyday Americans are coming together so quickly to help.  This is a true Act of God that needs to be treated with understanding and empathy.  The storm clouds are no longer on the horizon.  There is no one to blame.  Let's try to help one another and, with God's help, we can get through this natural disaster.

             eXp Realty of California, Inc

Raymond Henson, SRES, GRI, e-Pro

Past Client Testimonials   

3412 Babson Drive

Elk Grove, CA 95758

RayRHenson@gmail.com

916-698-8415

 

 

Comment balloon 23 commentsRaymond Henson, SRES, GRI • March 24 2020 03:03AM

Comments

Hi Raymond... great post to remind people that they have options if in financial distress... they just need to reach out and ask.

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (Coldwell Banker Realty) 5 months ago

I remember friends losing their homes or nearly losing their homes during the Great Recession because they were fearful of picking up the phone.  I just do not want that to happen again.  And Thank you, Nina Hollander 

Posted by Raymond Henson, SRES, GRI, Realtor (eXp Realty of California, Inc. (lic. #01878277)) 5 months ago

Raymond, great post, and I think MANY will need to call their mortgage holder for this agreement.    We had 250,000 filed unemployment in just a week in CO.

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (House to Home, Inc. - Denver Real Estate - 720-231-6373) 5 months ago

Raymond,

Your post is timely, however, I am seeing the end of all this..even the mass media is putting on a cautiously optimistic face, (don't forget to be pessimistic too from their view), and are starting to report old news as new that had appeared on Reuters weeks ago...Fanning Fears increases ad revenues...A

Posted by Ron and Alexandra Seigel, Luxury Real Estate Branding, Marketing & Strategy (Napa Consultants) 5 months ago

Joan Cox , those kind of numbers are staggering! 

Ron and Alexandra Seigel, I had family members and several clients call yesteday.  This blog is pointed to those in similar situations.  I am sorry  you think I am fanning fears.  My objective  is to help. 

Posted by Raymond Henson, SRES, GRI, Realtor (eXp Realty of California, Inc. (lic. #01878277)) 5 months ago

Raymond,

I did not say you are fanning fears.  I said the mass media is.  I realize that some people are in these situations, but it would help to give hope, to let people know that the situations are getting BETTER, than worse.  It may not be good for everyone, and yes there is help available as you indicated...A

Posted by Ron and Alexandra Seigel, Luxury Real Estate Branding, Marketing & Strategy (Napa Consultants) 5 months ago

Thank you, Ron and Alexandra Seigel.  I apologize for my misunderstandings. 

Posted by Raymond Henson, SRES, GRI, Realtor (eXp Realty of California, Inc. (lic. #01878277)) 5 months ago

Hi Raymond Henson, SRES, GRI I've been in the real estate business for 42 years....full time....every single day.... and I've seen more recessions than you could shake a deadbeat credit report at.... and I've always survived and usually thrived.... there's always a way....

and the one thing I learned early in those years is "when the tide is out, those who are swimming naked are fully exposed"... Warren Buffett....  just seeing those people exposed is worth the extra effort to survive in those horrible times....

Posted by Barbara Todaro, Marketing Agent for The Todaro Team (RE/MAX Executive Realty ) 5 months ago

Good afternoon Raymond Henson, SRES, GRI - this is really good information.  The biggest problem is people hear things and then they assume.  Don't assume be in touch.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) 5 months ago

Barbara Todaro, I started my real estate career in the Great Recession.  It was a tough time, but it was a good change for me.  We are probably needed more in the bad times than the good times. 

Grant Schneider, good advice for us all.  Thank you, 

Posted by Raymond Henson, SRES, GRI, Realtor (eXp Realty of California, Inc. (lic. #01878277)) 5 months ago

Hi Raymond- I worked with clients back in 2008 who were having to sell. Thankfully, they had knowledgable agents who worked with them and gave them some relief. 

Posted by Kathy Streib, Home Stager - Palm Beach County,FL -561-914-6224 (Room Service Home Staging) 5 months ago

It seems that everyone is affected by this and even if they are still able to work, there isn't as much work to be done since many things are shut down or paused.

Posted by Brian England, MBA, GRI, REALTOR® Real Estate in East Valley AZ (Arizona Focus Realty) 5 months ago

Raymond Henson, SRES, GRI - It is wonderful to know that you can be a light at the end of someones tunnel. You shine the light on those in need when they didn't even know they have options. 

Bravo to you! As many people will be grateful to doctors, nurses, and first responders in times of crises, let us never forget the work that people in the Real Estate Industry can provide, especially good Lenders and Mortgage people who are good at their jobs, like real estate agents like yourself, who have gotten to know many credible ones, so well. Raymond, you are spreading a good message. 

Thank you!

Posted by Patricia Feager, MBA, CRS, GRI,MRP, Selling Homes Changing Lives (DFW FINE PROPERTIES) 5 months ago

This is timely information to share. Many are facing severe financial issues.

Posted by Roy Kelley (Realty Group Referrals) 5 months ago

The financial hits alone over the last couple of weeks have been real shocks.  I read how the CA retirement systems, CALPERS and CALSTRS,  have taken massive losses.  They were already underfunded.  I was right in the middle of a renovation in Ohio and am an investor in a small CA development.  Clients that have to sell their homes.  People laid off.  I would hate to be a restaurant owner now. Yes, lots of challenges.  I am hopeful that we all come together to help, Brian England .  

Patricia Feager, MBA, CRS, GRI,MRP, thank you very much.  I am not sure how much I can help, but I do try.

Roy Kelley, thank you.  I always appreciate your input.    

Posted by Raymond Henson, SRES, GRI, Realtor (eXp Realty of California, Inc. (lic. #01878277)) 5 months ago

Kathy Streib, my educated guess is that as helpful as you are, you put plenty of clients in touch with great agents when they needed them. 

Posted by Raymond Henson, SRES, GRI, Realtor (eXp Realty of California, Inc. (lic. #01878277)) 5 months ago

Raymond, it will be interesting to see how our local economy fares in a couple of months.  

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (House to Home, Inc. - Denver Real Estate - 720-231-6373) 5 months ago

Hello Raymond,  This virus could put people behind and wonder how there fico score is going to effect people buying.

 

Posted by Will Hamm, "Where There's a Will, There's a Way!" (Hamm Homes) 5 months ago

Raymond, I think in a month we shall see how this shakes out, and what unemployment will look like, as well as if our clients have jobs, need to sell or what.  

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (House to Home, Inc. - Denver Real Estate - 720-231-6373) 4 months ago

Will Hamm, lets hope that they do not get that far behind and the scores are affected too negatively.

Joan Cox, it will be interesting.  I am hopeful that we will be back to somewhat normal in a few weeks.  It would be nice if our crystal balls worked, but mine never really worked that well.    

Thank you both for your input.

Posted by Raymond Henson, SRES, GRI, Realtor (eXp Realty of California, Inc. (lic. #01878277)) 4 months ago

This is a usedul post for all who are trying to understand their optionss

Posted by Lise Howe, Assoc. Broker in DC, MD, VA and attorney in DC (Keller Williams Capital Properties) 4 months ago

Thank you Lise Howe.  I appreciate your input and taking the time to read my blog.  

Posted by Raymond Henson, SRES, GRI, Realtor (eXp Realty of California, Inc. (lic. #01878277)) 4 months ago

Why aren’t Fannie and Freddie talking about Negative Amortization as a solution to the missed payments ???

Posted by Michael J. Perry, Lancaster, PA Relo Specialist (KW Elite ) 4 months ago

Participate