Do I Still Have to Pay My Car and House Loans During the COVID-19 Pandemic?
Payments could be delayed for up to a yearby Ciprian Florea, on
As a new global recession is looming in due to the novel coronavirus pandemic, the U.S. government is working on a new bill that will freeze your car payments. A new $2.5 trillion proposal, the third of a bill originally introduced by the Republicans and rejected by the Democrats, includes revised economic relief for the working class, as well as a temporary halt on car payments. Mortgage payments will also be delayed.
Can I Really Skip my Car and House Payments?
According to AutomotiveNews, this new bill, unveiled by House Speaker Nancy Pelosi, "would force lenders to grant a temporary reprieve from mortgage and car payments and credit card bills."
It would also allow the Federal Reserve to "provide loan servicers with liquidity to allow borrowers to stop paying their mortgages for up to 360 days."
However, it’s not yet clear if and when such a bill will pass. Democrats on Monday blocked a second attempt at a procedural vote to advance a $1.8 trillion plan, saying proposed loan program for companies lacks transparency and oversight. So, don’t earmark your car and house payment money for supplies just yet. There’s no telling when this bill could pass and go into effect, or when the associated stimulus package will actually reach people.
Automakers are shifting production to aid pandemic relief
As the COVID-19 crisis deepens in Europe and the U.S., automakers join global effort to build ventilators and masks. Carmakers shift to production of medical equipment and supplies following shutdown of vehicle assembly in numerous factories across Europe and North America.
Ford teamed up with 3M and GE Healthcare to produce ventilators and masks, while FCA is manufacturing and donating more than one million masks per month. Likewise, General Motors will work with Ventec Life System to increase production of its respiratory equipment. Fiat and Nissan are also building medical supplies at their factories in Europe.