As a small, independent mortgage broker, Burke Mortgage can serve Connecticut residents during the COVID-19 pandemic as they are seeking mortgages for purchase or refinance needs.
If you are worried about losing the home you have or the home you want…
Due to COVID-19 and health concerns worldwide, we are in one of the most volatile economic environments of all time. This includes the mortgage industry and the mortgage backed securities market which determines the rates offered to consumers now. The best direction for lending to go in near future is unknown. Put another way, should lenders continue to lend when consumers are losing their jobs and do not/will not have the ability to pay their debts, at least in the near future? On the other side, why would lenders want to take on debt when repayment is more than uncertain? Remember, they are obligated to pay their investors too. Unfortunately, this is a reality and the costs mortgage lenders are facing today, due to these uncertainties, are massive. This is why rates have risen and will continue to be volatile, despite what the American consumer hears through the media.
Please know that debt forbearance does not equal debt forgiveness.John Burke of Burke Mortgage
Mortgage Payment Deferrals, Mortgage Approvals, & House Closings
COVID-19 has had an immediate negative effect on the mortgage industry. It affects those shopping for homes (and mortgages), those in the middle of the process and waiting to close on their homes, and homeowners struggling to make mortgage payments due to loss of work.
Mortgage Payment Deferrals
Homeowners should know that foreclosures and evictions for mortgages backed by the U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Finance Agency (FHFA) will be suspended by at least 60 days. Mortgage Government-Sponsored Enterprises (GSEs), Fannie Mae and Freddie Mac, will let borrowers facing COVID-19 hardships defer mortgage payments. More information from the MReport (Your Trusted Source for Mortgage Banking News) on “GSEs Announce Payment Deferral Requirements“.
If you are in the middle of the mortgage approval process or completed the mortgage approval process and just lost your job due to the COVID-19 pandemic – you must report this information to the mortgage lender (i.e. to us here at Burke Mortgage). Mortgage eligibility is completely based on income availability but there is a chance your loss of work is temporary and you might be able to pause your mortgage loan application. more details about this in the article “I Lost My Job Due to COVID-19. Can I Still Get a Mortgage?” by Maurie Backman and published on The Motley Fool on March 23, 2020.
The National Association of Realtors has presented some recommended guidelines about real estate transactions during the COVID-19 pandemic.
“Members should consult their brokers, legal counsel, and government-provided public health information. In addition, check with your MLS for any changes to open house and showing fields, or other temporary rules in place due to local conditions.”www.nar.realtor
Read the National Association of Realtors general real estate Transaction Guidance During COVID-19.