Consumer Resources for COVID-19 Part 2: Loan Relief
- Lynn Chefren
- Sep 29, 2020
- 2 min read
This is the second posts in a series inspired by a CLE course I attended last Friday. I was amazed at the resources published in the last few months for COVID-19 questions, especially those related to your finances.
The most important point I took from last Friday’s class was that you as a consumer must ask your lender for help. Lenders are not going to reach out to you and offer to help. BUT if you call and ask, there may be options for your specific type of loan!
The biggest debt most people worry about is their mortgage. Under the CARES Act there are specific options if you have a government backed mortgage. Those are mortgages associated with Frannie Mae, Freddie Mac, etc. If your Mortgage is not government backed, do not despair! There may still be option outside the CARES Act.
If you are not sure who owns your mortgage or whether it is a government backed, the first thing to do is call the bank or mortgage company where you obtained the loan. They should be able to guide you. If you still aren’t sure, the check out the CFPB’s “How Can I Tell Who Owns My Mortgage?” page
You must be diligent in your efforts, document everything – who you called, what number your called, what options you chose, when you called (date and time), who you spoke to, what options were discussed, if someone is supposed to call you back, next steps, etc. The specific methods of relief vary by type loan and lender.
The Consumer Financial Protection Bureau is the government agency charged with “protect[ing] consumers from unfair, deceptive, or abusive practices.” They have created an excellent webpage dedicated to Mortgage Relief Options & Protections.
For other financial related COVID-19 related questions, I recommend these organizations:
USA.gov – The US government has a page summarizing possible sources of relief from the pandemic, including how the CARES Act can help your family. Read more here.
National Consumer Law Center – The NCLC fights for economic justice for all Americans. It’s COVID-19 & Consumer Protections page is a consolidated resource with links and papers discussing specific COVID related financial topics.
Consumer Financial Protection Bureau –The CFPB’s COVID-19 webpage provides information to help you protect and manage your finances during the pandemic. There is specific information on Mortgages & Housing, Student Loans, and more.
For general, non-health related COVID-19 Questions refer to these organizations:
Legal Aid of West Virginia – Legal Aid is a fantastic organization with a mission of helping West Virginians with a variety of legal matters. Their COVID-19 Resource Page covers a range of topics – going to court during the pandemic, stimulus payments, evictions, mortgage issues, among others focused on West Virginia.
W.Va. Attorney General’s Office – The AG’s office FAQ page answering questions related to COVID-19 in the state.
Of course, for all COVID-19 related health questions, the Centers for Disease Control and National Institute for Health are the definitive resources.
Stay safe and healthy during these unprecedented times! If CLBC can answer your legal questions, please reach out by telephone at (304) 213-0047, on our Contact Us page, or via social media.
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