Are You Prepared for the End of Mortgage Forbearance Programs?

Foreclosure cases across the country went down significantly in 2020.This is, of course, largely due to mortgage forbearance programs and foreclosure bans that have prevented creditors from finalizing foreclosure orders in the courts. Unfortunately, these programs and bans are coming to an end in early 2021, even though the COVID-19 pandemic and its financial challenges continue.

It is important for Florida homeowners to be prepared for the end of legal protections. By planning early, homeowners will keep as many options open as possible for avoiding foreclosure.

So what can be done? It depends on your specific financial situation. If you are back to work and able to resume mortgage payments, your lender maybe willing to work out a payment plan for your arrears. Remember – it costs lenders a significant amount of time and money to go through the foreclosure process. Even after foreclosure, the lender is left with an asset to be liquidated, and this, too, costs more money. All of this means that lenders are often willing to work with homeowners who can prove the ability to make payments.

You might be able to refinance at a lower interest rate or access the equity in your home through a separate line of credit. Your lender might simply be willing to add on missed payments at the end of your loan term or add on small amounts of repayment to your regular mortgage payments each month. There are many possibilities, but you must act early in order to access these options. Once an account has accrued too much debt the lender may no longer be able to avoid foreclosure.

 
The experienced Florida foreclosure attorneys at Quattrochi, Torres, and Taormina are here to help all Florida homeowners stay in their homes. Call 407.452.4918or contact us online today to schedule your free consultation.