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‘Flexibility is the key’: 90-day grace period on mortgages will be given to CT residents facing financial hardships due to coronavirus

Coronavirus

HARTFORD, Conn. (WTNH) — As the number of positive coronavirus cases continues to rise, Governor Ned Lamont is looking to ease those who have lost their jobs.

During a news conference Tuesday, Lamont announced he’s getting all of the bank CEOs together to see how they can take the pressure off those who have been laid off or are facing financial hardships because of the pandemic.

Those in trouble can apply online for a 90-day extension or reduction on their mortgages.

“Sometimes somebody just needs a month off,” Bruce Adams, CEO Credit Union League said. “Sometimes somebody might need three months off but they are able to pay a little bit more in month four. Sometimes you have to tack three months on the end.”

Financial institutions will also waive or refund mortgage-related late fees and other fees including early CD withdrawals. They cannot start foreclosure sales or evictions for 60 days. It will also have no impact on the borrower’s credit score.

The threshold for people will be very low. Officials said people are not going to have to fill out a bunch of applications or apply at the bank, they are going to make it easy to get that 90-day grace period.

“There will be very little documentation that you’ll need,” said Tom Mongellow, Connecticut Bankers Association. “If you’ve been laid off, you’re going to have that layoff slip. You’re going to have that unemployment application, whatever the case will be, so flexibility is the key.”

On Monday, Lamont said he brought all the hospital administrators together to create one large hospital. Now they’re trying to get the public and private partnership together to do the best they can to take the pressure off of people who have lost it all to COVID-19.

As of Tuesday, the state says half of the banks and credit unions are on board with this plan. They expect more to join the effort in the coming days.

More information can be found on the state’s website.

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