A lot of us are worrying about our finances lately, especially when it comes to paying the bills and budgeting. OPDC staff has expertise in housing and financing and is familiar with local and national programs and funders – let our knowledge help you navigate these uncertain times.
There have been a lot of valuable articles and links being shared - we’ve compiled some recommended resources below. We hope that these will be of assistance to you and your family when it comes to mortgage and rent assistance, as well as how to prioritize budgeting. Please reach out to us if you have any questions or need additional assistance – we’re here to help!
Mortgage
Are you having trouble making your mortgage payment? These resources may help.
If you’re a homeowner at 80% or below the area’s annual media income, you may qualify for $3,000 in assistance for mortgage payments, including late fees through the URA’s COVID-19 Housing Stabilization Fund. Click here for more details and contact information to see if you qualify.
You may also have the option to defer your mortgage payment. The first step is to contact your loan servicer to find out what options are available. (This is the company that collects your monthly payments—it may not be the same bank you worked with to set up the loan).
The CARES Act allows mortgage forbearance for federally backed loans (including FHA and VA loans and loans sold to Fannie Mae or Freddie Mac). If you don’t know if your mortgage is federally backed, contact your mortgage servicer.
Most mortgages fall into this category, but sometimes, special mortgage products, like loans for first time homebuyers or moderate-income buyers may be what is called a portfolio loan, meaning it is not sold to Freddie or Fannie, but is maintained by your local bank.
The CARES Act also halted foreclosures a short period of time. This means that a foreclosure will not go all the way through the courts. But, your bank may still initiate some foreclosure proceedings. If you get notices that your lender is starting foreclosure proceedings, contact us right away. There are programs that can help prevent foreclosure and help you stay in your home.
Many banks have also instituted mortgage forbearance policies, so check with your individual lender for more details. Before deferring your mortgage payments, be sure to read the fine print. Some of the forbearance programs may defer your payments for three, six, or even 12 months, but then require you to pay the full amount for those months at the end of that time frame. Some may offer different modification options or repayment plans.
Mortgage forbearance can be a good option for those who would otherwise be at risk of losing their home, but it is something you should consider carefully. Here are some things to think about that might help you determine if this is the right path for you to pursue:
What is your bank’s policy on repayment and is the repayment plan something you can manage when you return to work?
Have you already cut back your budget in other areas?
Do you have student debt? If so, have you applied for forbearance, deferment, or an income-based payment plan?
Have you applied for mortgage relief programs or another form of assistance that will enable you to pay back your missed mortgage payments in a few months?
Do you have another plan for repaying the payments?
Are you out of options and at risk of losing your home?
Answers to these questions can help you decide whether mortgage forbearance is right for you. Our Financial Coach, Camille Smith, can also help you work through your options.
Additional resource for homeowners in PA:
Protection for Homeowners in Pennsylvania Affected by the Coronavirus
Rent
There are also options out there for those who need assistance paying their rent.
First, it’s important to know that the PA Supreme Court has a moratorium on evictions through April 30, 2020. If Governor Wolf’s stay at home order extends past April 30, this moratorium may be extended as well. By this order, your landlord cannot evict you this month.
If your landlord threatens to change the locks or forcibly evict you during this time, inform them of the moratorium and call the police if they escalate to action and inform the police that you are the victim of an “illegal forcible eviction.” You can also call Neighborhood Legal services for assistance: 1.866.761.6572.
There are additional protections for residents in Federally assisted housing (including Section 8 Housing Choice Voucher programs, public housing, and Low Income Housing Tax Credit housing). Evictions and late fees are suspended until July 25, 2020. See this flyer for more details.
Although the court will not be ordering evictions at this time, once the moratorium is lifted, your landlord is able to pursue eviction for non-payment of rent. If you are having trouble paying your rent, contact your landlord and explain your situation. Being upfront and honest about your current financial situation including loss of income, unemployment benefits, increased expenses, etc. will help make sure you are both on the same page. Hopefully your landlord will work with you to create a payment plan to keep you in your home.
Financial resources available for renters in Pittsburgh and Allegheny County:
URA Housing Stabilization Program: Available for City of Pittsburgh residents ONLY. One time and short term financial assistance available to households who are facing a temporary housing crisis. Funding can cover rent, utilities and any legal fees due to eviction proceedings. Contact United Way of Southwestern PA to begin the application process. Call 211 on your phone or see the flyer for other ways to contact them.
SWPA United Way Emergency Basic Needs – Covid 19 Fund: Individuals who have been affected by COVID-19, residing in Allegheny, Butler, Fayette, Westmoreland, and some zip codes in Armstrong, may be eligible for assistance through the COVID-19 Assistance Fund. United Way can also connect you with other available resources if you call, text, or chat with them online. Application can be found here.
Hebrew Free Loan Association: 0% interest loan of up to $5,000 to help individuals facing financial challenges caused by the COVID-19 outbreak. Details here.
Budgeting and Goals
Many of us were not prepared financially for the pandemic; a lot of people are struggling to make ends meet and are making some very serious decisions on what bills and necessities require payment now versus what can wait until they return to work.
The staff at OPDC’s Financial Opportunity Center works with individuals in private one on one sessions (currently virtually and over the phone). Assistance is confidential and customized to your needs and goals.
Whether you work with our financial coach or want to get started on your own with budgeting, worksheets are highly recommended as a great place to begin and put your financial thoughts together.
One of the most important places to start would be creating a budget with financial figures that mirror your household income at this time. Write down the bills that you need to pay right now. Calling creditors to get on payment plans will also help you to create a balanced budget that will reflect your household necessities. OPDC FOC team members can offer guidance for negotiating with creditors. When you’ve received your stimulus check, using it wisely and according to your budget is very important to keep you afloat.
Remember that it is never too late to start saving. Putting aside 10% of your income will help you to save for future emergencies or a safety fund.
Resources for budgeting and goals:
Savings Goals worksheet
Money Goals worksheet
Also, be sure to check out this comprehensive collection of resources for help with food, education, mental/emotional support, and more.
OPDC staff is available and reachable during this time. We can help you work through your options, offer guidance, and connect you with others who can help. If you have any questions, please feel free to contact the following OPDC staff members. (Please note, staff is checking their voicemails regularly, so feel free to leave a message or send an email.)
Mortgage – Annemarie Malbon – amalbon@opdc.org or 412.621.7863 x14
Rent – Jodi Lincoln – jlincoln@opdc.org or 412.621.7863 x10
Budgeting & Goals – Camille Smith – csmith@opdc.org or 412.621.3821 x12