Payment Shock COVID 19

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  • #67285

    It’s me again! Sooo I checked my statement, subtracted the Stimulus check money from the ending balance to see if we saved our payment shock….and we didnt 🙁 We’re short $234. We were doing so good at first. Besides stocking up more groceries than normal (to minimize leaving the house), I’ve been having to help my Mother with rent so I’ve been sending her $100 a week. Is there any exceptions at this time? If not, will I have to do an additional 3 months to show payment shock?

    #67287
    Nelsont
    Member

    I believe the only exceptions are on a case by case basis and you would have to prove loss of income as a direct result of covid19 and get proof probably by way of a letter from your employer on company letterhead stating your income will return to normal once the pandemic is over.

    I would imagine buying extra groceries and helping your family fall into the category of spending more than you should be. If this is the case then your payment shock timeline starts over.

    As far as I know there is no bank in the country that has relaxed their criteria for obtaining any loan especially mortgage loans due to covid19 because of the housing crisis in 2008. The leniency I am aware of is for current loan holders not prospective ones.

    #67289

    I had the same question. Appears that the qualifications are not going to alter. As @nelsont said the banks are getting stricter but it’s ashamed that sone type of exceptions can’t be made

    #67291

    Thank you @nelsont I figured that’s how it would be looked at but I thought I’d ask being that many things such as student loans are making an exception due to this new normal. Mortgage loans is just a beast of its own I see lol

    #67292
    Nelsont
    Member

    @Peach0991 it is not easy no matter what program you use to get a mortgage loan including through naca. But if you follow the guidelines and stay the course with naca you will meet your goal.

    #67293

    @realgarycoleman I feel for those that are completely knocked out the program because they were layed off or furloughed. In that case, I’m expecting a strict policy but a month of being short due to a crisis should be taken into consideration. Adding an additional month to save payment shock (to cover the one we missed) is reasonable. Guess I’ll cut back on groceries because I HAVE to help my mother right now. 3 more months it is 🙁

    #67298
    TTrumble
    Member

    Hello all,

    I think the real point is being overlooked here. Payment Shock Savings is one of the single most crucial parts of qualifying in the NACA program. It is the part that proves you are able to afford a monthly mortgage payment larger than you current rent by having you save the difference between your current rent and your desired mortgage payment every month without fail.

    Those two words “without fail” are critical even under the current circumstances. There is no guarantee that the next time there is some sort of crisis the banks will offer a forbearance program or any other sort of relief to homeowners. And you just can’t send them a mortgage payment that is $247 short one month. Any mortgage payment that is not for the full amount due at that time will be rejected, sent back to you and you will become delinquent on the loan.

    In other words, the current situation is in fact irrelevant where Payment Shock is concerned. Saving Payment Shock shows that you are ready for the future, no matter what may happen. You have to show that you are ready and able to make that mortgage payment on time and in full each and every month, because you can’t count on anyone or anything to be there to give you a break the next time a crisis happens, whether it’s a personal crisis or a world-wide one.

    Certainly nobody will ever fault you for helping out your mother, but if it happens to the point of coming up short on your mortgage payment, there will be consequences to deal with. As such, a three month setback is by no means unrealistic.

    ALL THAT HAVING BEEN SAID… When did you give the money to your mother? If it was after you received the stimulus check, who’s to say that you just didn’t give her part of the stimulus money? There are some people out there who are still working full time and are doing okay who are giving away part or all of their stimulus money to charities, helping people they know who are struggling, or supporting people on the front line with supplies or even meals (which in turn supports local restaurants). If you got the check first, then it’s just a matter of an LOE explaining what you did to help her.

    Going forward though, it’s got to be Payment Shock in full every month. BTW @Peach0991, shoot me a quick email. I have one other item for you that I want to share with you privately.

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

    Tim Trumble
    Online Operations, NACA
    ttrumble@naca.com

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