(ReliableNews.org) – At the end of July, the federal moratorium on foreclosures expired. Unfortunately, more than a million Americans were not able to pay off their balance at the end of that time, putting them in danger of losing their homes.
Black Knight’s Mortgage Monitor estimated the number of borrowers who are 90 days or more behind on their payments is over 1.5 million. The delinquencies are at the lowest level since the start of the pandemic, but rates have remained elevated across all 50 states.
— Jacqueline (@perfectquarters) August 26, 2021
However, many homeowners who are behind on their payments have been able to make agreements with their mortgage companies to avoid foreclosure. For those who are still having trouble making payments, there are options to avoid foreclosure.
- Defer payments: Call the lender of federally-backed loans and ask them to defer the delinquency costs to the end of the loan. That allows the borrower to get in good standing without worrying about paying down a large amount of missed payments and fees first.
- Ask for a loan modification: Many lenders allow borrowers to change the loan terms to lower monthly payments and avoid foreclosure.
- Refinance the mortgage: Borrowers might be able to refinance their loans due to COVID-19 hardship. That could lower payments and interest rates. Keep in mind, it generally extends the life of the loan.
Falling behind on mortgage payments can be overwhelming, but it doesn’t need to end badly. The important thing all borrowers should remember is that communication is key. Lenders don’t want to foreclose if they don’t have to, so reach out to them.
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