City of Palmdale's Coronavirus Update – 5/7/20

Palmdale City Manager, JJ Murphy presents today's COVID-19 Update:

If you’re among those financially impacted by the coronavirus pandemic, you might be concerned about how to pay your mortgage or rent. Federal and state governments, as well as financial institutions and loan servicers, have announced plans to help struggling homeowners during this time.

For many homeowners with mortgages, there’s help available, but the experts at the federal government’s Consumer Financial Protection Bureau, are strongly advising that you first assess your situation.

First of all, if you can pay your mortgage, pay your mortgage.

But, if you can’t pay your mortgage, or can only pay a portion, the experts say to contact your mortgage loan servicer immediately.

It may take a while to get a loan servicer on the phone. Loan servicers are experiencing a high call volume and may also be impacted by the pandemic.

One of the options that has been talked about recently that has come available to individuals through the new Coronavirus Aid, Relief, and Economic Security or (CARES) Act is mortgage forbearance.

Forbearance is when your mortgage servicer or lender allows you to pause, suspend, or reduce your mortgage payments for a limited time while you regain your financial footing. Forbearance doesn’t mean your payments are forgiven or erased. Let me repeat. A forbearance doesn’t mean your payments are forgiven or erases. You are still required to repay any missed or reduced payments in the future. To explain more of the details and risks involved, please check out this informative video from the Consumer Finance Protection Bureau.

(CFPB VIDEO)

So, while forbearance may be an option for you during this crisis, remember it does not mean your mortgage payments are forgiven or go away. A great resource that is available to residents to help with the forbearance issue, and other pressing things such as foreclosures, is the Los Angeles County Disaster Help Center website. They’re under the LA County Consumer and Business Affairs department and they can answer your questions and talk about options that are available to you.

You can reach them at (833) 238-4450. They can even help you if you’re a landlord and you are experiencing financial hardship because your tenant is not able to pay rent. For those matters, you can either call or email rent@dcba.lacounty.gov. For more information on those services, please visit www.dcba.lacounty.gov/foreclosure-prevention/.

Until the next time, please stay safe. Keep wearing your face coverings, maintaining social distancing, washing your hands, and staying home if you are sick.

And remember, #PalmdaleCares about you!