Foreclosure Moratorium Alert! Homeowners Scramble To Save Their Homes In A Booming Housing Market

Foreclosure Moratorium Alert MFI-Miami has issued a foreclosure moratorium alert for homeowners facing possible foreclosure.

The federal foreclosure moratorium on mortgage foreclosures ended July 31st. As a result, homeowners will now have to deal with overdue payments that were paused for more than a year. 

However, Homeowners that accepted forbearance agreements have the burden of lump sum payments due by September 1st.

Lenders can now proceed with foreclosures. They are also giving a priority to borrowers who have abandoned their properties or have not responded to their outreach. 

Foreclosure Moratorium Alert: Time Is Not Your Friend!

Foreclosure Moratorium Alert Under the Cares Act, borrowers hit hard by the pandemic and having trouble making their mortgage payments were provided with forbearance protection.

You may be entitled to receive an extension under CFPB guidelines. However, you need to have received a forbearance under the Cares Act

You can get an extension as long as you haven’t reached the maximum months of forbearance. For most borrowers the 18-month maximum will be this fall.

You also need to contact your mortgage servicer and ask for assistance. It won’t happen automatically. 

In addition, FHA announced an extension of the foreclosure-related eviction moratorium for foreclosed borrowers through Sept. 30.

The Biden administration has extended the forbearance enrollment window through September 30th for government-backed loans. Government backed loans account for 75% of all mortgages in the US.

The extended pandemic-related forbearance could last up to 12 months.

What Your Options Are In A Post-Moratorium World

There are various ways homeowners can deal with past-due mortgage payments.

Generally, there are four options:

  • Reinstatement (pay it all back in a lump sum)
  • Payment plan (higher payments to pay back over a period of time)
  • Deferral (move missed payments to the back of the loan, resume making old payment)
  • Loan modification (changing the terms of the loan to achieve a lower payment)

The last two options are the ones most consumers will use to exit forbearance.

could sell their home if none of these are doable.  some money because housing prices are skyrocketing in many areas.

(1) Comment

  • Foreclosure Moratorium Alert! Homeowners Scramble To Find Help – New York Foreclosure Blog 10:21:18 am September 2, 2021

    […] Read More At MFI-Miami […]

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