Beginning April 2020, a federal moratorium was implemented to put a halt to evictions for non-payments of rent. With renters not paying or borrowers losing their jobs, many homeowners were not able to pay their mortgages. As of September 2021, the moratorium ended. Many foreclosures are predicted with homeowners unable to catch up with missed payments.
If you are a homeowner, you may be asking what is coming for you. Over 5 million homeowners asked for the homeowner’s forbearance program. This extended non-payments under the CARES act. However, this too ended in September. An estimated 1.6 million people were on the forbearance program when it ended. This represented an unpaid balance of $313 billion. Nevertheless, 98% of troubled borrowers have at least 10% equity in their homes. They could sell before the home forecloses and still make a profit.
Millions of borrowers whose homes will go into foreclosure due to lack of equity. However, first states have to catch-up with foreclosure paperwork before the pandemic. The moratorium foreclosures will likely not take effect until the beginning of 2022.
If you are a borrower under foreclosure, it is essential to work with a bankruptcy attorney. An experienced attorney can explore payment methods which could avoid foreclosure. If you want to keep your home, you may qualify for loan modification or repayment agreement. If the government backs your loan, you might qualify for a special workout option. It is important to explore your options before foreclosing. Attorney Eric Mercer is an experienced bankruptcy lawyer in Sacramento, California. Contact the Law Offices of Eric Andrew Mercer to find a solution to your foreclosure.