The Foreclosure Moratorium Has Ended.
What now?
COVID-19 caused a tremendous amount of disruption to American life which led to many institutions, and the federal government, placing a moratorium on evictions for those who could not pay their mortgages on time. In the end 18 months of payment delays were allowed but that period has ended, or will be ending soon if the loan was federally backed.
According to Fox Business, mortgage delinquency rates fell to 4.14% in July, which is half of where they were in May. While that is a large and positive improvement, roughly 1.45 million homeowners are still at least 90 days delinquent on their mortgage payments.
The good news is that banks don’t appear to be chomping at the bit to foreclose. Many will work with homeowners so that the entire past-due amount isn’t required up front. Some banks are even voluntarily extending their forbearance period.
This isn’t to say that foreclosures are not happening, or won’t soon. If you are nearing the end of a forbearance the best thing to do is reach out to your lender as soon as possible and discuss options and next steps. Showing that you are on top of it and ready to take control can make a difference to a business overwhelmed with others who may be trying to avoid the conversation altogether.
A lot of banks will place past-due payments on the back end of the mortgage giving homeowners a tremendous amount of breathing room, although this does of course extend the original pay-off timeframe. For many who were out of work or unable to pay on their mortgage for other reasons this has been an incredibly beneficial lifeline.
Okay, but what if you ARE foreclosed on?
Just because you are being foreclosed on does not mean all is lost. You can get a foreclosure lawyer that may help you find other options, or that could spot errors made by the lender that could buy you more time.
Following a foreclosure notice you also still have a chance to pay back the past-due amount, if that becomes an option. In the Commonwealth of Virginia, the lender or trustee has to serve the homeowner with a notice at least 14 days ahead of a foreclosure sale. This means you do have that window of time in which to sell the home yourself.
If you find yourself nearing the end of forbearance and are interested in more options RENOMAX Real Estate has solutions.
With the RENOMAX program we renovate your home so that it sells for more, offer up to $2,500 to assist with mortgage/rent payments, security deposits, moving and storage expenses, as well as list it for free and with no upfront cost to you – we get paid at the closing table.
The idea of being foreclosed on can be frightening but it doesn’t mean you don’t have options. If your forbearance is nearing an end, or if you fear foreclosure is in your future, call 540-737-5617, or visit https://www.renomaxva.com/ to see how we can help.
