Proposed bill could cancel your rent, mortgage payments during coronavirus pandemic

FILE - In this Wednesday, July 5, 2017, file photo, a sold sign is displayed in front of a house in Sacramento, Calif.  U.S. long-term mortgage rates hovered near all-time lows for the third straight week amid fresh signs of severe damage to the economy and the housing market from the shutdown spurred by the coronavirus pandemic. Mortgage buyer Freddie Mac says on Thursday, April 16, 2020,  the average rate on the benchmark 30-year home loan slipped to 3.31% this week from 3.33% last week.  (AP Photo/Rich Pedroncelli, File)
FILE - In this Wednesday, July 5, 2017, file photo, a sold sign is displayed in front of a house in Sacramento, Calif. U.S. long-term mortgage rates hovered near all-time lows for the third straight week amid fresh signs of severe damage to the economy and the housing market from the shutdown spurred by the coronavirus pandemic. Mortgage buyer Freddie Mac says on Thursday, April 16, 2020, the average rate on the benchmark 30-year home loan slipped to 3.31% this week from 3.33% last week. (AP Photo/Rich Pedroncelli, File) (Copyright 2017 The Associated Press. All rights reserved.)

A U.S. representative is proposing a bill that could cancel all rent and mortgage payments through the duration of the coronavirus pandemic.

The “Rent and Mortgage Cancellation Act of 2020” is being proposed by Minnesota’s Democratic Rep. Ilhan Omar.

According to Omar’s office, the bill would constitute full payment forgiveness for renters or homeowners.

During the COVID-19 suspension, tenants and residents will also not accumulate debt, face additional fees, penalties or interests, or have their credit scores or rental history negatively impacted due to nonpayment, the proposed bill states.

The act also establishes a landlord relief fund that would reimburse losses from the canceled payments.

Click here to read the full proposed bill.


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