Don't Panic: Here's what to do if you can't pay your May rent or mortgage.

With a record 30 million unemployment claims filed since the start of the coronavirus pandemic, many Americans are facing dire financial straits. One of the largest expenses for American families is housing, which accounts for nearly 40% of the average person's budget.  If you have lost your job or revenue for your business, we understand you may be panicking right now about writing a check for your May rent or mortgage. But if you can't pay, or are scared of being able to afford necessities if you do, there are options. Here at Skip we are a mission-driven company and  we care deeply about the well-being of our community. We have collected some resources below to help you ride out this crisis--without losing your home.

Understand the Eviction Stays in the CARES Act

The federal pandemic response bill, the CARES Act, includes a 120-day moratorium on evictions and late fees for unpaid mortgages. Most states also have eviction stays for renters who cannot pay their rent.  This is to make sure that if you can't pay your rent, you will not end up homeless. You can look up the specific tenant protections at the Department of Housing and Urban Development website here.

Unfortunately, if you don't pay your rent or mortgage, you will owe it to your landlord  or bank eventually. The CARES act doesn't include a rent freeze, which would mean that landlords wouldn't be collecting rent.

If you don't want to be in debt for your full rent, there are some other routes you can take.

Open a Conversation with Your Landlord or Mortgage Servicer

The most important thing to do right now is maintain conversation with your landlord. It can be scary to communicate your needs to a landlord, but you'll be better off if you open a dialogue rather than just not sending a check.

Ask your landlord if you can do a payment plan, or whether they might accept partial payment. Explain the economic hardship you are facing--did you lose your job, or did your spouse? Have you had medical expenses come up?

To make this conversation as easy and smooth as possible, you can utilize an email template--here are a few options from Business Insider.

The same applies if you cannot pay your mortgage or can  only make a partial payment--contact your mortgage servicer immediately. Be aware that calls may have longer wait times than normal.

Look into Mutual Aid

Even outside of the government's pandemic response, there are many different emergency funds and mutual aid programs stepping up to assist those who have lost their income due to COVID-19.  Most, although not all, mutual aid programs fall into one of two categories--for residents  in a certain area, and for people in certain industries, like freelancers, street vendors, journalists and small business owners. With a quick Google search, you should be able to find grants and emergency funds that you qualify for; nonprofits may also be able to help you navigate the process.