It is true that the Federal CARES Act has offered advantages to people who were severely impacted financially due to the coronavirus epidemic. However, with a few COVID relief programs coming to an end What should you do to prepare? These are the most important programs and protections closing soon, and the best way to prepare your family and yourself for the next phase.
The benefits and protections of Coronavirus will end Soon
Pandemic Unemployment Assistance (PUA)
The weekly amount of benefits and length for unemployment differ according to state, the additional 600 dollars per week that people who are eligible to receive PUA receive will end on July 27 2020. This benefit added on the 27th of March of 2020, after it was passed by the CARES Act passed.
Eviction Moratoriums
With Eviction moratoriums in nine states, and on the national level, lifting throughout all of the U.S. at the end of July there is a chance that around two millions Americans are at risk to lose their home. Since eviction moratoriums are imposed at the state, city or even local levels it is important to know how the situation is in the place you live.
Mortgage Forbearance
The CARES Act includes two crucial clauses for homeowners who have mortgages guaranteed with Fannie Mae as well as Freddie Mac. First, houses with federally-backed mortgages are not subject to foreclosure up to the date of August 31st 2020. The second reason is that homeowners with federally-backed mortgages financially affected by COVID-19 may apply for a hardship waiver on their loan, which is and then a 180-day extension, if necessary (so 360 days in all).
The issue is that there are a few home loans that are secured through Fannie Mae or Freddie Mac. Private mortgages are a lot more common. lenders offer an option of forbearance for 90 days, however if you took the forbearance during March or April you may have to start paying again soon.
How to prepare for the Final Day of Coronavirus Benefits and Protections
Find Other Methods of Economic Relief
If you’re a self-employed freelancer, self-employed or a small business owner, then you’re qualified to apply for this program. Paycheck Protection Plan (PPP) which is an unsecured loan that is cancelled. The deadline to apply for the PPP was extended to August 8.
Other forms of economic relief include those offered by the Economic Injury Disaster Loan (EIDL) which provides up to $10,000 in advance ($1,000 per worker) and a once-off loan of $1,000 for small-sized entrepreneurs.
Apply to receive SNAP Benefits
SNAP, the federally-backed scheme to offer emergency food stamps, has relaxed their restrictions in response an outbreak. In particular, the program temporarily lifted the limit of three months which allows adults with no children to be eligible for SNAP benefits. Parents of children who were eligible for free or reduced meals may also get help through SNAP.
Request Rent Relief
Certain places offer rent relief on a local level. For example for instance, in Los Angeles, in the County of Los Angeles, residents living in those living in the City of L.A. who have income requirements meet for two months rent relief at a rate of one thousand dollars per year. People who live in an unincorporated portion within the County of Los Angeles might be eligible to receive $1,000 per monthly for up to three months.
See whether there are similar programs to rent relief where you reside. It is important to determine whether you’re able to have the income required to be eligible and whether the program is accepting applications.
Know Your Rights
While eviction moratoriums are gradually getting lifted, renters must take note that tenants might still have rights that can keep their eviction as explained by Brian Pendergraft an tenants rights attorney who is based in Maryland.
In Maryland the moratorium on evictions is ending on July 25 however, residential tenants who have experienced losses in income are protected by an order of the governor. The order prevents the judges from making an order of possession against tenants who show that they have suffered a substantial income loss because of COVID-19. This order will be in place during the time that the emergency state remains in place.
“Tenants are advised to contact an attorney on a pro bono basis organization to find out what protections they still have within their respective jurisdictions,” says Pendergraft. Another great place to look for help at no cost or for a minimal fee is to contact a tenant rights group within your region.
Create a new Budget
With benefits that are being expanded set to end in a few days You’ll need to do seriously at your budget. What is your cash flow going to appear to be for the month of July? What bills will you be responsible for in the next month, or perhaps?
You’ll also need to consider the areas where you could cut costs. The three most important expenditure categories include food transportation, food, and housing. Review your expenses and determine if there are any sensible cuts you can take (you’ve probably already cut back many cuts, and there might not be any extra fat to cut down at this moment). On the other hand you should look out for work-from-home side business opportunities which are genuine and worth the effort.
Create a Payment Plan
It’s also a good opportunity to review your financial burden and consider how you could reduce the amount of your monthly minimum payments. For instance, certain creditors provide relief through temporarily suspending or decreasing minimum payments.
If you’re seeking an option to consolidate your debts but are worried that you might be hindered by recent dings on your credit score, you should consider the possibility of a debt management program. There’s no credit requirements and a one-time payment and nearly all major lenders will provide an interest-free rate when cooperating with a non-profit credit counseling company.
In terms of rent, find out whether you can negotiate the payment schedule together with the landlord. As tenants, you have much more power than you believe. “Right now landlords are facing immense stress,” says Pendergraft.
“I believe that landlords have more motivation to work with tenants to get their tenants on payment plans, rather than to force them out. Also, working out the terms of a payment plan with tenants can be an easier option for a landlord rather than having to go to court, particularly in cases where court hearings are very few and rare.”
Are you unable to pay for an amount at present? Another option is to look into negotiating the terms of a lease termination agreement that explains Pendergraft. The lease termination agreement must include a reduction of a significant portion of unpaid rent or the option of a “cash exchange for keys” agreement.
If you require assistance with to develop an investment plan that will prepare you for the coming months MMI’s staff of accredited counselors are always available. We’ll assist you in coming with a personalized strategy and direct you to important sources.
