CONGRESSMAN BOBBY RUSH HELPING HOMEOWNERS AND RENTERS KEEP A ROOF OVER THEIR HEADS

U.S. Rep. Bobby Rush (D-1st) has proposed legislation that would require deferred mortgage payments to be repaid at the end of the loan term rather than the deferral period, and would also provide assistance to renters behind on payments. Photo credit: Wendell Hutson
U.S. Rep. Bobby Rush (D-1st) has proposed legislation that would require deferred mortgage payments to be repaid at the end of the loan term rather than the deferral period, and would also provide assistance to renters behind on payments. Photo credit: Wendell Hutson

Congressman Bobby Rush Helping Homeowners and Renters Keep A Roof Over Their Heads

BY WENDELL HUTSON

Contributing Writer

The COVID-19 pandemic has not only claimed thousands of lives in Illinois, but jobs too thus making it difficult for many homeowners and renters to keep a roof over their heads.

Edward Simmons, 61, said the mortgage for his 3-bedroom, two bathroom Grand Crossing home would be paid off in 10 more years.

“At least that’s the plan, if I can get caught up on my mortgage,” he explained. “I got laid off from my job as a manager for [a] national retail store and now I have fallen behind on my mortgage. My lender gave me an extended due date for my February payment and then deferred it for 30 more days and now it’s due, but I need more time.”

Proposed legislation (H.R. 6492) by U.S. Rep. Bobby Rush (D-1st), whose district includes Chatham, Park Manor and Grand Crossing, would help Simmons and other homeowners who are behind on their mortgage payments. The bill aims to help families make ends meet by extending mortgage deferments and preventing renters from being easily evicted due to non payments.

The Ensuring HOMES (Homeowner and Occupant Monetary Encouragement and Stability) Act would require any payments of principal or interest on a residential mortgage loan that are deferred during a COVID–19 emergency period to be due no earlier than the last day of the loan term.

Additionally, the bill would create a Tenant Protection Program and encourage landlords to waive rents, extend leases until aft er the COVID-19 emergency period and would put a moratorium on evictions. In return, landlords would receive a quarterly forgivable loan from the U.S. Department of Housing and Urban Development.

“Basically this bill would put mortgage deferments at the end of the loan rather than requiring it to be paid within 90 days. Th is way, homeowners have more time to get their finances organized and back on track with their mortgage,” Rush told the Citizen.

“Renters are also having a hard time and I want to help them by making a pathway for them to get caught up on back rents because we know this COVID-19 pandemic has caused hardship for everyone.”

Typically, mortgage loans run between 10 and 30 years and longer loans make monthly payments smaller. For example, if a homeowner has a 30-year mortgage and received one deferment, the payment for that missed month, would not be due until aft er 30 years.

And Rush added that while the CARES (Coronavirus Aid, Relief, and Economic Security) Act does offer some relief to homeowners, it does not go far enough.

“While the CARES Act has assisted many homeowners, it has unfortunately left many of my constituents, as well as other countless Americans across the nation, without the appropriate

financial assistance they need during these unprecedented and perilous times,” said Rush. “As it stands, the CARES Act only defers loan payments for federally-backed mortgages, which means homeowners with other types of loans could be expected to pay back those deferred loans immediately following the COVID-19 emergency.

That expectation is a fantasy for most homeowners especially the millions that are currently unemployed.”

More time to find new employment or to restructure income is what home- owners need, said Simmons.

“I am not trying to get away from my responsibility. I just want a little more time to get things in order,” added Simmons. “Most homeowners want to stay in their homes and pay their mortgages. All we need is more time to pay, that’s all.

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