Unfortunately for many already in a home, this is a stressful time. Many distressed homeowners are getting into deeper trouble.
[Ads /]
Robert Benavides walks into his meeting with a housing counselor from A-1 Community Housing Services in Hayward.
RELATED: Building a Better Bay Area: The Housing Shift
The Union City man is struggling to keep up with his mortgage payments. The independent plumber has seen much of his work dry up during the pandemic.
"It just started to slow up, but this just made it worse," he told us.
Benavides asked us not to show his home, but just recently succeeded in getting a loan modification to save it from foreclosure.
"I was threatened and dates were given for auctions of my house on four different occasions," Benavides recalls.
He's fearful the current situation could push him back into foreclosure.
"It's tight, it's close. It is affecting my income," said Benavides.
VIDEO: San Francisco turned ghost town? Here's how empty the city really is
SF turned ghost town? Here's how empty the city really is
His situation may not be unique.
[Ads /]
The Mortgage Banker's Association estimates just under four million Americans are in forbearance, which allows them to skip paying their mortgage due to the pandemic.
Lenders gave them three months to get back on their feet.
Those three months are about to expire for many, but under the CARES Act homeowners with federally-backed loans could get another three months and ultimately a total of one year.
Executive director Nancy Rivera of A-1 Community Housing Services fears that could cause more harm.
"The way I'm seeing it is you, you're just buying time. You're just buying time and once that's due, unless you have $20,000, $30,000 in back payments. I mean, we're going back to 2009," she warned.
The Great Recession began in 2007.
By 2010, 120,000 homes were repossessed in the month of September alone.
RELATED: Solution to affordable housing in San Francisco could be modular units, construction company says
A-1 Community Housing Services fears a repeat. So for the next seven months, it's hosting monthly webinars for individuals in danger of foreclosure.
[Ads /]
"So we're starting to offer more direct one-on-one counseling with individuals to help with a loan modification," said Rivera.
Homeowners who lack the funds to pay back mortgage can request a deferment to put the payments owed on the back end of their mortgage.
"It's almost like starting all over again. That's a deferment," she explained.
Christina Tetreault of Consumer Reports emphasizes that may be the preferred option for many.
Still, Benavides is uneasy.
He's dipped into his retirement savings to keep up.
"I'm staying afloat, but sometimes it's just, yeah, I get a little nervous," he told me.
Consumer Financial Protection Bureau: Find a housing counselor
Take a look at more stories and videos by Michael Finney and 7 On Your Side.
If you have a question or comment about the coronavirus pandemic, submit yours via the form below or here.
Get the latest news, information and videos about the novel coronavirus pandemic here
RELATED STORIES & VIDEOS:
- COVID-19 Help: Comprehensive list of resources, information
- Watch list: Counties where COVID-19 is getting worse
- MAP: Everything that's open, forced to close in Bay Area
- Everything to know about CA's confusing reopening plan, summer shutdown and what comes next
- From salons to dinner parties: Experts rate the risk of 12 activities
- Coronavirus origin: Where did COVID-19 come from?
- Life after COVID-19: Here's what restaurants, gyms will look like
- What is a COVID-19 genetic, antigen and antibody test?
- What will it take to get a COVID-19 vaccine and how will it be made?
- What does COVID-19 do to your body and why does it spread so easily?
- Here's how shelter in place, stay at home orders can slow spread of COVID-19
- Coronavirus Timeline: Tracking major moments of COVID-19 pandemic in San Francisco Bay Area
- Experts compare face shield vs. face mask effectiveness
- COVID-19 Diaries: Personal stories of Bay Area residents during novel coronavirus pandemic
- Coronavirus Doctor's Note: Dr. Alok Patel gives his insight into COVID-19 pandemic