SACRAMENTO (CBS13) — Amidst this coronavirus crisis, there’s now an effort to avoid another California mortgage crisis.
Governor Gavin Newsom announced an agreement with banks to allow three-month waivers on California mortgage payments by homeowners impacted by then coronavirus — starting now.
Sacramento homeowner Adam Riggins opened up his mortgage statement a day after filing for unemployment.
“It basically takes your world and flips it upside down,” Riggins said.
Riggins has been a bartender in Sacramento for the past 15 years. With his work suddenly shut down by state orders, he’s one of the million Californians to file an unemployment claim in just the past week, and one of the California homeowners trying to hold on to home sweet home.
“It’s an expensive asset and I feel like I did it right and played my cards right, and earned it, and I’ve broke my back to get this place and I don’t want to lose it over this,” Riggins said.
Governor Gavin Newsom announced Wednesday that homeowners like Riggins will get mortgage relief after an agreement with more than 200 banks to give homeowners impacted by the coronavirus a 90-day waiver on their mortgage payments, with no hit to credit scores.
“It is significant that we have some consistency,” Newsom said, “That we don’t have some patchwork one bank to another.”
Riggins plans on applying for the waiver.
“I just kind of want to see where I stand and what I need to fill out because I’m definitely going to,” Riggins said. “You know, this is my baby.”
For this Sacramento bartender, California’s mortgage waiver is lifting his spirits.
“Who knows where we’re going to be in 90 days,” Riggins said. “Hopefully we’re hanging out downtown again, and I’m making you a nice cocktail or something you know? That’s what I’m hoping for.”
Governor Newsom says so far, 90 days is the consensus among most banks. He noted if your mortgage is with Bank of America, so far they are publicly committing to only a 30-day waiver for now.