![]() ![]() Some other types of lenders are using this approach. That keeps monthly payments the same as they were before and just extends the amount of time to pay the loan. Under the rules for mortgages, consumer advocates say the vast majority of people hurt financially during the outbreak who entered a forbearance plan should have their missed payments moved to the end of the loan term. Without better protections, when it comes time to make up for the missed payments, "there's going to be a lot of people who could experience massive credit reporting harm," says Wu, an attorney focusing on consumer credit issues. ![]() "You must have a capacity to catch up with your payments in an affordable way," Panameño says.Ĭhi Chi Wu with the National Consumer Law Center agrees. Otherwise, she says, lenders could make demands beyond what people can afford. So she says lawmakers need to protect people. She says when it comes time to make up for all those skipped payments, there are federal rules for repayment plans for home mortgages but not for many other types of loans. ![]() "Credit cards, auto loans, installment loans, there are no federal guidelines," says Aracely Panameño, a director at the nonprofit Center for Responsible Lending. The Coronavirus Crisis 7-Year No-Interest Loans: What It Takes To Sell Cars In A Pandemicīut looking ahead, advocates say people could run into big trouble because the terms of these hardship programs can be all over the map. "My wife has filed, certified every week for her unemployment for 10 weeks now, and they have done nothing," says Jonathan Baird of Bruceton, Tenn. For one thing, the help still isn't reaching many people who need it. The problem is that these efforts aim to create a financial bridge to the future for people who've lost their income in the pandemic - but the bridge is only half-built. Help from Congress and leniency from lenders have kept impending financial disaster at bay for millions of people. Normally, that could mean massive foreclosures, evictions, cars repossessions and people's credit getting destroyed.īut much of that has been put on pause. His mortgage and auto lenders told him he didn't qualify for help.Īmericans are skipping payments on mortgages, auto loans and other bills. Jonathan Baird and his wife, Nichole, say they've had to decide between making their car payment and buying food since she lost her job in the pandemic. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |