The Coming Wave of Foreclosures


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.

About the author 

Eric Mercer

Eric Mercer is the owner and primary attorney at the Law Office of Eric Andrew Mercer based in Sacramento, California, but represents clients all over California. He started his legal career as a patent litigator at an intellectual property law firm in Palo Alto, California. He formed his own law firm in 2009, where his practice includes family law, consumer law, and personal injury. His family law practice focuses on parents’ custody rights and support. His consumer practice focuses on individual and class action litigation involving mortgage loan servicing, foreclosure avoidance options, mortgage origination, foreclosure rescue scams, automobile fraud, and unfair debt collection. His personal injury practice focuses on bicycle and motorcycle accidents. He is experienced in California and federal courts through all phases of litigation, trial and appeal.

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