Foreclosure and eviction moratorium to expire in 3 weeks
MID-MICHIGAN (WJRT) - June 30, which is three weeks from Wednesday-- the current nationwide eviction/foreclosure moratorium will expire.
If you are not in a mortgage forbearance program with your lender and you’re behind on your payments because of the pandemic, the roof over your head now may end up becoming the bank’s.
“I would say the biggest thing is don’t feel helpless yet,” said USA Mortgage broker Tiffany Roeper.
She said now is the time for homeowners to contact their lender to enroll in a forbearance plan, if the pandemic has caused financial hardship to where buyers can’t make payments.
That plan or program will protect homeowners for three to six months from any foreclosure proceedings going forward.
Forbearance is where payments are suspended for a period of time, at no penalty to the homeowner. However, if July 1 or after someone decides to want to enroll in a forbearance program it will be too late.
“It really is easier for someone to call their lender and for them to try and work with you on getting set up on either repayment or forbearance than to try and go through a foreclosure,” Roeper said.
Forbearance programs can happen many different ways. Once the moratorium lifts, a lump sum payment may be an option, extending the term of the loan or increasing monthly payments may be other options. It really will depend on the lender.
But only three weeks remain before legally foreclosure proceedings can begin.
Homeowners might be concerned about how forbearance may impact their credit score. Roeper says as long as they are enrolled in a program and their lender doesn’t add on late fees, which they shouldn’t be doing anyway, credit scores should remain the same.
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