Options Available For Every Homeowners To Avoid Foreclosure Amid Pandemic

Options Available For Every Homeowners To Avoid Foreclosure Amid Pandemic

options available to avoid foreclosure amid pandemicForeclosure is a situation in which a homeowner is unable to make mortgage payments as required, which allows the lender to seize the property, evict the homeowner and sell the home, as stipulated in the mortgage contract.

Due to the global Novel Coronavirus (COVID-19) outbreak, homeowners are now faced with unforeseen difficulties due to the unexpected economic turndown. Many are at risk of defaulting on their mortgage payments, or worse, foreclosure. Millions of Americans including one million Ohioans have filed for unemployment since March due to the economic fallout from the Coronavirus pandemic.

Do NOT wait until you’re unable to pay your bills to contact your lender. Here are some options available to avoid foreclosure amid pandemic:

Get ahead of a foreclosure.

Because foreclosures are handled differently in each state, you’ll want to learn about yours specifically.

As soon as you realize you might have trouble making your mortgage payments, you’ll want to get in touch with your lender. Once they know about your financial difficulties, they can work with you to create a plan, USA.gov says, but DO NOT stop paying your bills. You do not want to wait until you can’t pay your bills to contact your lender. The longer you wait to call, the fewer options you will have.

Mortgage forbearance

According to USA.gov, federally backed home loans can get six months of mortgage help, and Federal Housing Administration reverse mortgages are eligible, as well.

If the coronavirus pandemic has impacted you in a way that has left you with problems making payments, your loan servicer can do one of two things:

  • Defer or reduce your payments for six months if you contact them to make arrangements.
  • Give you another six months of mortgage relief at your request.

Loan modification

You and your loan servicer can agree to permanently change some terms of the mortgage contract to make the payments more manageable. These modifications might include:

  • Reducing the interest rate.
  • Extending the term of the loan.
  • Adding missed payments to the loan balance.

Another modification might include reducing the amount of money you owe on your mortgage by forgiving or cancelling a portion of the debt.

If loan modification or forbearance is something you’re interested in, make sure you can show you are making a good-faith effort to pay your mortgage. The Federal Trade Commission says if you can show you’ve tried to lower bills elsewhere, your loan officer may be more likely to negotiate with you.

Making Home Affordable Program

Get help through the Making Home Affordable (MHA) program, which will provide you free counseling when it comes to advice and assistance in keeping you in your home or safely getting you out.

Filling Unemployment Benefits

Consider filing for unemployment through your state’s unemployment department to determine if you are eligible for such benefits.

Sell Your Home.

This may not be your ideal solution, but this could be the best way to provide the funds you need to pay off your current mortgage debt in full.

There are many options available to you, but the bottom line is: Contact your lender, and do not wait until it’s too late. They will be able to take a good look at your loan and investigate what the best option might be for you should you find yourself in trouble paying your mortgage. Remember, each case is different, and the details surrounding the case will play a role in how long the process will take to complete. And If you need to know more options available to avoid foreclosure amid pandemic, you may call us at 216-282-4332 and CPD Homes will be more than happy to assist you!

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