The Covid-19 pandemic is putting a strain on households across the nation. The economy remains slow and there is little daily improvement. Many Americans are struggling to meet their financial needs and make their crucial payments. There are quite a few options out there to help families in need. Now, some banks are offering deferment on mortgage payments.
What is a Deferment?
So, many banks are currently trying to help their customers during the pandemic. They know that many of their customers have been laid off or have had their hours reduced. In response, banks are now giving their customers additional days to pay their mortgage bill. Some banks, such as Ally and BB&T, are offering their clients 90 to 120 days deferment on mortgage payments. Now, customers can breathe a little easier knowing they have a couple more months to get back on their feet. You do need to contact your lender to inquire about options. Do not expect your bank to automatically defer your mortgage payment.
The Difference Between Deferment on Mortgage Payments and Forbearance
Both Deferment and forbearance can both postpone mortgage loan payments. The major difference between the two is that forbearance always increases the amount you owe. And deferment can be interest-free for certain types of mortgage loans.
List of Major Banks with Loan Deferment or Other Options
- Ally Bank is offering payment deferral for up to 120 days with no impact to your credit on home loans.
- BB&T is offering mortgage forbearance for a minimum of 90 days.
- BMO Harris is offering payment relief options on mortgages, home equity, loans and credit cards. You should contact BMO Harris directly for more information.
- Charles Schwab Bank customers with mortgages or home equity lines of credit through Charles Schwab Bank and Quicken Loans can request payment relief for up to 90 days.
- Chase has multiple offers of assistance with mortgage payments. You must call 800-848-9380 for more information.
- Citi customers should call 1-855-839-6253 for more information.
- Comerica Bank is offering loan deferrals on various lending products. Call 888-444-9876 for more details.
- East West Bank EWBC is offering temporary mortgage payment relief options for those affected by COVID-19.
- Fifth Third Bank FITB offers a 90-day payment forbearance with no late fees on mortgages and home equity loans.
- HSBC has several financial assistance programs to help with customers’ mortgage or home equity loan payments. Call 855-806-4657 for more information.
- Huntington National Bank HBAN is offering up to 90 days of payment deferral on all consumer loans, including residential mortgages.
- M&T Bank MTB has mortgage and home equity repayment assistance programs for those customers whose income has been reduced due to COVID-19 impact.
- New York Community Bank NYCB offers a 90-day residential mortgage payment.
- PNC Bank is willing to postpone payments for up to 90 days with no late fees for customers with mortgages or home equity loans.
- Regions Bank has relief upon request for 90 days for those negatively impacted by COVID-19.
- SunTrust STI offers mortgage forbearance for a minimum of 90 days for customers impacted by the current crisis.
- TD Bank has a payment deferral program for mortgages and home equity loans or lines of credit. And they will also waive late payment fees.
- Union Bank will provide assistance with your mortgage or home equity account. For more information, called 800-237-0561.
- U.S. Bank offers a payment forbearance up to 90 days with no late fees on mortgages for those negatively impacted by the current crisis.
- Webster Bank WBS is offering options for payment deferrals on mortgages, home equity or personal loans, and small business loans, based on need. And Webster is also putting in place a 90-day moratorium on foreclosures.
- Wells Fargo WFC : has a payment deferral plan for customers with mortgages, credit cards, auto loans, small business loans and personal loans.
Another option for those in need is to take out a loan. Many national banks are offering extremely low-interest loans to customers. These loans are intended to meet the needs of those struggling to make their mortgage payments. If you are worried that deferment on mortgage payments will not be enough, then loans are another viable option. Loans will help you and your family meet their financial needs during this pandemic. But, make sure to have a lawyer review your loan contract just to be safe. Try to avoid additional credit card debt during this time.
If both loans or deferment on mortgage payments are not for you, there are still a couple of solutions. To discuss other options, it is recommended that you seek the aid of a specialized attorney. From there, an attorney can assist you with debt consolidation or debt resolution. Every situation is unique, so it is up to you to decide which route is best for you.
Follow our blog for other quick tips on how to stay on top of your debt during COVID-19.