My COVID-19 Mortgage Forbearance Period is Ending. What Should I Do?
Due to the COVID-19 pandemic, many struggling homeowners have received mortgage forbearance when they have been unable to make their monthly payments. Many homeowners have received their forbearance through the CARES Act, which has provided forbearances for federally backed mortgages.
During the mortgage forbearance period, several relief efforts have been in place for borrowers with federally backed mortgages, including:
- A grace period from mortgage payments
- No new foreclosures
- No foreclosure-related evictions
- No credit score changes due to COVID-19 relief
However, it is important to note that mortgage payments were never waived or forgiven, just delayed. Homeowners who benefitted from forbearance will have to pay their lender back once forbearance ends.
With mortgage forbearance currently scheduled to end June 30, 2021, millions of borrowers will be exiting relief programs at the same time, with many of them facing foreclosure.
While lenders and the government prepare for this upcoming situation, the best thing homeowners can do is prepare a strategy for the end of forbearance.
Can I Get a CARES Act Loan Modification?
While we don’t know for certain exactly what will happen when forbearance ends, what we do know is that the best way to avoid foreclosure, get back on track with monthly payments, and stay in your home is applying for a loan modification.
It is critical to act quickly and have a plan for when forbearance ends. Contact Ira J. Metrick today to discuss your options.