The COVID-19 pandemic had a huge effect on the US economy. As a result, many US citizens ended up losing their jobs and/or income. As a result, the US government issued various stimulus checks or tax rebates to relieve millions of middle and lower-income families during the pandemic. However, even homeowners felt the result of this – one of the greatest contractions of the US economy in its history. For these reasons, according to an online article from Digital Market News, homeowners, previously during the pandemic, were given the option of putting their housing mortgages for ‘forbearance’.
Definition Of Terms – Forbearance
According to the online report, this means that borrowers would be given the ability to put their monthly mortgage payments on pause. This would help them meet other living costs during the pandemic. Such an option allowed this delay in payments without borrowers being considered delinquent. However, according to the report, the period for this forbearance was only 18 months. That means – it has already elapsed.
The report makes it evident that not only is there an increase in property value around the US, but this has led to added strain on homeowners. Thus, they find it even more difficult to meet and keep up with their mortgage payments. Furthermore, the report makes it clear that homeowners still have the option of selling to pay their mortgage. However, according to this news report, the difficulty of finding alternative accommodation is still to be considered. In this light, this is exactly where stimulus checks are needed and useful.
The Good News For Homeowners
As stated in this report, the good news is that homeowners in New Jersey, US, who have found themselves in the situation of struggling to meet their mortgage payments might have stimulus relief provided. The Emergency Rescue Mortgage Assistance program will help to provide up to $35,000 in stimulus relief assistance to such struggling homeowners. This aid will come in the form of stimulus check payments regarding their property taxes.