Having Trouble Paying Your Rent Or Bills For The Coronavirus?

2024 Author: Steven Freeman | [email protected]. Last modified: 2023-12-17 08:15

Across the country, parents and individuals alike face financial pressures caused by the coronavirus pandemic.

This Thursday it was revealed that an overwhelming number of at least 17 million people have applied for unemployment benefits to the government in the four weeks that is ending. According to multiple reports, in cities like New York, where COVID-19 has been felt most strongly, up to 40% of people may not cover their rent on April 1, the date on which thousands traditionally pay their rents.

Here the finance guru Xavier Serbiá, who is a columnist and presenter of the CNN Money program, explains what we can do to protect ourselves against the financial attacks that this crisis has unleashed.

Rent payment:

I understand that there is a federal order under the CARES ACT released on March 27, that you cannot be evicted for a period. You cannot be evicted. One thing must be clear: one thing is rent for someone who pays the rent to a landlord. And you have a homeowner who is paying a mortgage to a bank. Banks have announced that they are not going to make an eviction, they are not going to evict you [if you do not pay the mortgage]. It should be noted that each state is different and you have to consult local rules.

How to trade:

The key is to speak. Communicate. Contact the banks. Contact the landlord and talk, explain. Say: 'Look, I have this problem, I'm out of a job, I'm looking for money, I'm looking for unemployment insurance … negotiate. There are banks that are going to tell you 'Don't pay me for these 30 days, we are going to move your payment'… It is the same with credit cards it is the same with personal loans. So far, there is no order requiring banks that you cannot charge people. That does not mean that this situation is eternal. Once this period is over, the landlord may have that right to evict you. What you cannot do is not pay. Maybe you can use the rental deposit. You have to look for options.

Loans that are available

Through HUD [Department of Housing and Urban Development], Fannie Mae, Freddie Mac, if I'm not mistaken about 50 percent of the loans are in some way subsidized or supported by the government. And there are the multi-family units and the single units. It may happen that those loans that you are paying on the mortgage are subsidized by the government and [it] has some rules for the coronavirus issue and maybe that will benefit you.

And maybe talk to the landlord because he can tell you 'I can't lower your rent, I can't allow you not to pay me'. But maybe [tell him]: 'Your mortgage is subsidized by the government and maybe the government will give you money if you help me with the rent.'

Where to look for more information?

HUD must be found:

You have to look for Freddie Mac:

You have to look for Fannie Mae:

You have to find the housing department of your state. Search the sites of the banks.

More information about federal government aid and coronavirus at:

More information at the Center for Communicable Diseases (CDC)