Bank of America will allow its mortgage customers to pause payments in wake of the coronavirus … [+]
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Homeowners who are struggling financially due to the coronavirus pandemic may now see some relief—at least if they have a Bank of America mortgage.
According to an announcement from the company early Thursday evening, homeowners with Bank of America mortgages and home equity loans can now defer their payments in the wake of the COVID-19 outbreak.
Mortgage holders will need to request the deferment directly through the bank, and the waived payments will be added to the end of their loan term. There’s no formal word on how many payments can be waived or for how long, and deferments are approved on a case-by-case basis.
Dean Athanasia, president of Consumer and Small Business at Bank of America, says the company is doing all it can to provide “additional assistance and support” in the midst of the current national emergency. The bank is also refunding overdraft, maintenance, late and non-sufficient funds fees for its banking and credit card customers. Small business and auto loan holders can also defer their payments.
The news follows New York Governor Andrew Cuomo’s announcement this morning that homeowners facing financial hardship can pause their mortgage payments for up to 90 days.
“This is a real-life benefit,” Cuomo said in a press conference this morning. “People are under tremendous economic pressure. Making a mortgage payment can be one of the No. 1 stressors. Eliminating that stressor for 90 days—I think—will go a long way.”
Foreclosures have already been paused on all FHA-, Fannie Mae- and Freddie Mac-guaranteed loans, and evictions were suspended on properties owned by the Department of Housing and Urban Development on Wednesday. Bank of America has also paused all foreclosures, evictions and repossessions during this time.