Multiple Banks Offering 90-Day Grace Period For Mortgage Payments

March 25, 2020 14:40 pm · 19 comments

Gov. Gavin Newsom announced Wednesday that multiple major banks will offer a 90-day grace period for mortgage payments in light of the COVID-19 coronavirus outbreak.

The grace period applies only to homeowners making mortgage payments to Wells Fargo, Citi Bank, JPMorgan Chase and U.S. Bank, according to Newsom.

State legislators praised Newsom and the banks for negotiating the grace period but called for a similar grace period for tenants across the state who pay rent.

“This is a major relief for homeowners who have lost their jobs,” Sen. Scott Wiener, D-San Francisco, said. “Now we must provide relief to struggling renters, and that means, at a minimum, an eviction moratorium.”

Newsom has already signed an executive order allowing individual jurisdictions to pause rent payments and enact eviction moratoriums for renters, but only some city and county governments have taken that step.

Wiener said he is authoring a statewide eviction moratorium with Assemblyman Phil Ting, D-San Francisco, and he hopes Newsom will sign a similar executive order before tenants statewide pay rent on April 1.

“Families should not lose their homes because of COVID-19,” Newsom wrote in a Twitter post. “Very pleased that Wells Fargo, Citi, JPMorgan and US Bank have agreed to a 90-day grace period for mortgage payments for those impacted by #COVID19. A big sigh of relief for millions of CA families.”

{ 19 comments… read them below or add one }

Lazy One March 25, 2020 at 2:44 PM

How about Contra Costa County lower our property taxes. That would help!

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Mimi March 25, 2020 at 4:12 PM

Excellent idea?

John P March 25, 2020 at 8:39 PM

If you document that your property is now worth less, you can have your tax reduced. It’s not something that happens overnight, though.

garbearfitness March 25, 2020 at 2:45 PM

Many people will need that relief since Bernie Sanders is holding up the whole thing by himself!!! Thank goodness he won’t be President.

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Cellophane March 25, 2020 at 3:29 PM

The deal is that at the end of the 90 days, the total past due amount is payable in full.

Imagine the late fees and interest rates, bad credit reports and evictions if people can’t pay in full.

The banks will own a lot of houses and the people are getting the short end of the stick, again.

Gavin is not working for the best interests of the people.

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Anonymous March 25, 2020 at 3:30 PM

B of A won’t cooperate .

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Momo March 25, 2020 at 6:43 PM

I am having my mortgage and credit card payments deferred by Bank of America… with no penalties…don’t know why you are saying that…

jp5air March 25, 2020 at 3:45 PM

I don’t think it is an automatic payment holiday for everyone. You will have to show some level of proof that you have lost your source of income due to the COVID-19 situation. There will be no late fees, balloon payments, or negative reporting to the credit bureaus, but interest will continue to accrue and it will take longer to pay off your loan.

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ranchgirl March 25, 2020 at 4:18 PM

Most banks that offer extension usually require you to cover the interest for the month. For a mortgage, that amount can still be fairly significant. This is different than a 90 day grace period. The best thing to do is contact your lender to see what is available to you. Most are willing to work with their customers during this crisis.

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S March 25, 2020 at 5:34 PM

always read the small print

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CG March 25, 2020 at 6:04 PM

I believe they are giving people a grace period meaning putting the payments at the end. More than likely the interest will still calculate, you just will not have to pay it during those months. In sense, if you take advantage of it, your payoff date is 90 days later and that may cost extra amount of interest but peace of mind. Bofa is being studit in not helping people. I would not expect they would as they are not a bank that cares in my oppinion. Yet this is a win-win. A win for those that are suffering and concerned about how they will pay their mortgage and a win for the bank making more interest on the mortgage in the long hall.

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Momo March 25, 2020 at 6:46 PM

Bank of America is helping me… I deferred my mortgage and credit card payment with no penalties

Stop look and listen March 25, 2020 at 6:32 PM

Which giant monster mega-bank is missing? Banksters of b of a.

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DodgerDog March 25, 2020 at 9:30 PM

Bank of America absolutely is working with homeowners to help them out; as someone else noted, also with credit card payments. Just because they aren’t part of Newsom’s press release doesn’t mean they aren’t helping their customers; they definitely are.

TraumaRx March 25, 2020 at 9:36 PM

How about managing your money properly and have enough saved up so you don’t have to be in this situation. Stop living paycheck to paycheck people!

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Momo March 25, 2020 at 10:55 PM

You never ever have anything nice to say…I don’t live pay check to paycheck… but I don’t want to empty out my savings account either… and why would you care if people are requesting to have payments deferred… it’s not coming out of your pocket…

Nokeem March 26, 2020 at 11:33 AM

That is just absurd to say in a pandemic of this scale. Saving 20 percent or even 10 percent of one’s paycheck is not feasible for at least 20 percent of the population. Sure, there are folks who do a fine job of economizing and saving, but not most people, as the middle class and its’ income is not what it used to. That said, one should make best efforts to save and people do, but they don’t always have two months worth of expenses.

Original G March 26, 2020 at 11:51 AM

Was told by what turned out to be a very wise man, put six months gross salary in the bank and don’t touch it.
At that time, thought he was nuts. Have since learned a years gross salary gives one a sense of security that you don’t have to stress if a financial problem comes up.

About now your saying, he’s nuts ! ! !

For a month carry a pad and pencil with you and to nearest dollar log your cash and card purchases or expenses.

Example,
Do you buy a retail coffee? How often in a week?
Multiply cost times frequency during a week then multiply by 4, then multiply that answer by 12.
Should be sitting down for the final answer.

Another factor is your skill set you offer a potential employer. Have you considered taking classes to improve your skill set?

LMC and DVC offer classes.
Example, https://www.losmedanos.edu/careeradvancement/

Very often graduates of ETEC program are approached by industry wanting to hire them before end of their final semester.

Am graduate of program prior to it being handed off to LMC and make a comfortable living wage.

Victroica March 26, 2020 at 8:52 PM

Does this deferral apply to a equity lines? I think these are considered a 2nd mortgage. Right?

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