What Happens Now That the Covid-19 Foreclosure Moratorium Has Ended?

Sep 20, 2021

Back in March of 2020, the United States government banned banks from foreclosing on homes. The idea was to help out American families who may be experiencing financial straits because of the COVID-19 pandemic, but as of early August, the foreclosure moratorium has ended. This will affect many people; an estimated 1.75 million homeowners are currently in some forbearance plan. Now that the relief has ended, what can homeowners do?

You May Still Be Eligible for Some Relief

If you are still struggling financially due to the pandemic, you may be entitled to ask for an extension. According to the Consumer Financial Protection Bureau, you are eligible for an extension as long as you haven’t reached the 18 maximum months of forbearance as listed in the CARES Act. But you need to ask to get this extension, so don’t hesitate.

You Have Some Time

As per federal law, foreclosure proceedings must wait at least 120 to start, after the foreclosure moratorium ended. So this time gives you a good grace period for you to discuss your next steps with our team.

You Have Options

You may be able to restructure or refinance your loan, depending on your personal situation. Or, you may be able to tack on your remaining balance onto the back end of the mortgage. Right now, the nationwide housing market is booming, so banks have little incentive to completely put delinquent homeowners into foreclosure. Explain your situation, and see what options are available to you.

There Are Additional Relief Options

The Department of Housing and Urban Development is committed to prevent foreclosures. To do this they aim to provide homeowners with a 25% reduction in borrower’s monthly principal and interest payments. This will be implemented within the next few months.

The team at Hamilton Legal Services wants to help you keep your home. We can help you with this unprecedented situation, so give us a call today.

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