Over 10 million homeowners are behind on mortgage payments and 1 in 5 renters are behind on rent.
The devastating reality is that people are not working. Mostly because of the lockdowns during the pandemic. Even those who want to work are finding it hard to find employment.
The temporary solution put in place by the government is the mortgage forbearance program. It was was recently extended by President Joe Biden on February 16, 2021.
Federal housing regulators extended mortgage forbearance programs for an additional six months upon the order of the President.
This is expected to help boost the economy and turn it around. Assuming things will get back to normal and the lockdowns will be lifted.
A SIGH OF RELIEF
Due to the COVID-19 pandemic millions of Americans face never seen before hardships.
Nearly 2.1 million homes are currently facing mortgage delinquencies and forbearance is a temporary sigh of relief. What exactly is forbearance? Forbearance is when a homeowner’s lender or mortgage servicer freezes their mortgage payments for a certain amount of time.
This is has helped a slew of homeowners and has prevented many foreclosures. Each bank has their own policy. Check with your lender to know what is required from you after this period ends.
FORECLOSURES LOWER THAN PREVIOUS YEARS, BUT…
Foreclosures, compared to previous years, have went down a ton. But millions of homeowner’s financial situation may still not be resolved. Once forbearance comes to an end they will face foreclosure if they don’t continue to pay their monthly mortgage payments.
It is estimated that when foreclosure moratoriums on government-backed loans begin to lift. 1.8 million mortgages will be dangerously delinquent.
It’s not until after the government programs expire that everyone will know how bad the situation really is.
The Biden administration is proposing that the American Rescue Plan should deliver more aid to struggling homeowners. The rescue plan creates a Homeowners Assistance Fund which will provide states with $10 billion to help struggling homeowners catch up on their mortgage payments and utility costs.
WHERE TO TURN AFTER THE FORBEARANCE ENDS?
There are some options to avoid foreclosure. Many organizations can help you through this stressful time.
Like the Consumer Financial Protection Bureau (CFPB). Who provide help for homeowners and renters during the coronavirus national emergency. If you’re a struggling homeowner they help you get mortgage assistance.
They help you take swift action with your forbearance. Making sure you find out the terms of forbearance you have with your mortgage lender. If you think you may not be able to pay after the forbearance period ends organizations like CFPB can help you take action.
Let your lender know your financial situation. Many times banks will work with you if you show them you are concerned.
United Homes of America (UHA) is another one of those organizations. They are a non-profit organization that has spearheaded a crusade to help 10,000 homeowners avoid foreclosure.
Due to the unprecedented circumstances an abundance of homeowners are seeking services during the covid-19 pandemic. The great news is that UHA’s services are now offered 100% without charge.
“At UHA we want to share lessons learned from our own experience; there is a way out.” – Tony Rivas
Tony Rivas is the founder and president of UHA. As a homeowner who found himself in the middle of the housing crisis in 2008, it’s all still fresh in his mind: empty promises that eventually led him to give up his family’s home.
Taking the valuable insight learned from his experience he opened UHA. Through strategizing and exercising every available option, foreclosure avoidance and homeownership preservation is possible across the nation.
With personal consultation services valuing around $1k a consultation, UHA is dedicated to providing financial assistance, honest resources, and personalized solutions for homeowners all free of cost.
There are other organizations out there that can help you through your forbearance. Make sure you don’t wait to the last minute to get help. Contact them today to make sure you are unfortunate to lose your home when it was a simple as a phone call to ask for assistance.