California Announces 90-Day Mortgage Relief Package Amid COVID-19 Crisis
By N24 Correspondent, SACRAMENTO: Amid the ongoing COVID-19 crisis, California Governor Gavin Newsom has announced a financial relief package for Californians that would include, among others, a 90-day grace period for their mortgage payments.
As per the announcement, financial institutions will offer up to 90 days to borrowers economically impacted by COVID-19 to pay their mortgages.
In addition, those institutions will provide borrowers a streamlined process to request a forbearance for COVID-19-related reasons, supported with available documentation.
Borrowers can also request for additional relief from the financial institutions, as practicable, upon a continued showing of hardship due to COVID-19.
The financial institutions will not report derogatory tradelines, for example, late payments, to credit reporting agencies against the borrowers taking advantage of the COVID-19-related relief.
Likewise, for at least 60 days, financial institutions will not initiate foreclosure sales or evictions, consistent with applicable guidelines, while for at least 90 days, financial institutions will waive or refund the mortgage-related late fees or any other applicable fees.
“Millions of California families will be able to take a sigh of relief,” said Governor Newsom in a statement released on Wednesday.
“These new financial protections will provide relief to California families and serve as a model for the rest of the nation. I thank each of the financial institutions that will provide this relief to millions of Californians, who have been hurt financially from COVID-19,” said Governor Newsom.
The state government of California has secured a support from various financial institutions, including the Citigroup, JPMorgan Chase, U.S. Bank, and Wells Fargo and nearly 200 state-chartered banks, credit unions and service providers to protect the homeowners and the consumers.
Published Date: Wednesday, March 25th, 2020 | 06:20 PM