Barb Schlinker The Real Estate Voice

Barb, The CARES Act was hastily passed because of the COVID19 Outbreak, there is a provision for people with a mortgage to skip their house payments for up to 1 year, allegedly with no harm to their credit. How Does it Really Impact People who Skip Their House Payments?1. CARES Act – The law allows for people who have home loans backed by:a. Fannie Mae – Conventional Loansb. Freddie Mac – Conventional Loansc. FHA – FHA Loansd. VA – VA Loans2. To skip payments for up to 1 year without giving proof of a hardship!a.  As of last week: 4.75 MILLION people had done so, representing about $1.04 trillion of unpaid principal according to Black Knight.b.  Because the companies servicing the loans, still HAVE to pay the “INVESTORS” people to give the month for loans, for at least 4 months before the government takes ownership of the loan…it resulted in homes loans becoming less available because lenders have less funds to work with…For certain types of borrowers:  They are:I. A credit score below 660 (was 580)ii. Cash-o