8 Important Steps To Rescue Your Home as COVID Rages (VIDEO)
The COVID-19 pandemic has caused millions of Americans to lose their jobs and apply for financial help. The American Banker’s Association estimated that as of mid-2021, there are an estimated four million Americans are in forbearance. This program allows homeowners to temporarily skip paying their mortgage due to the COVID-19 pandemic.
Many Americans are relying on banks to get a loan to pay back mortgage to prevent falling into foreclosure.
Foreclosure is a legal process, which the lender attempts to recover an outstanding balance loan from a borrower. Foreclosure to your dwelling is a horrifying nightmare that everyone should avoid. And if the sale of your home doesn’t cover your loan balance, you may end up paying more money than you have. Some of these smart moves can help you from property foreclosure.
1. Pay Back Your Fees and Debt in Large Lumps Sum
Reinstatement lets you pay back the amount as a lump sum payment that could include interest and penalty charges. This must be paid before a specific date. You can reinstate your installments if you fall back on your mortgage payments.
Over four million Americans are in forbearance according to the Mortgage Banker’s Association. Lenders gave homeowners three months to get the bank on their feet and pay back the loans.
For millions of homeowners those three months are about to expire, but the CARES Act gave homeowners an extra three months on top of that. In August 2020, Governor Newsom signed a statewide COVID-19 tenant and landlord protection legislation.
2. You Need To Make Your Payments Your Top Priority
Prioritize your debt accordingly. Personal loans, credit card bills, and other financial debts can take a back seat until you pay off your mortgage amount completely.
3. Be Smart and Try to Negotiate the Interest Rate
Foreclosure can be expensive on your lender, so contact your bank first, and try to negotiate the interest rate. It is easier for any lender if you make payments for the property, rather than dragging this problem to court and selling the property again.
4. Beware of Foreclosure Scams
Swindlers may try to cash in on your situation if they see you struggling. But, don’t let them prey on the desperate. They may promise to choose you up from the few, but do not sign over the deed to your residence.
Deed fraud is a serious problem in the United States, especially now with the COVID-19 pandemic.
5. Try Extending the Mortgage Loan Plan
Try and revise your mortgage loan plan or negotiate to restructure the mortgage plan. You can extend the idea of the loan, spreading it over a few years. You will have enough time on your hands to pay the mortgage loan.
6. Make Sure to Get Receipts and Copies of All the Forms
It is always safe to offer the terms of an offer written as it acts as a new testament, and will be safer to verify later if required.
7. Look for Short Refinance
If you find short refinance, the lender may forgive some of your loans, and refinance the remaining debt in an entirely new loan. As a part of the loan omitted, this can reduce your distress.
8. Apply for Special Forbearance
An unexpected occurrence being a medical emergency, or a decrease in income may come when it comes to making payments on time. In these cases, your lender may consent to your repayment where you will in the short term owe lower payments, or you will see a short-term pause on your payments.
Foreclosure problems need to be tackled all at once, or it could be disastrous. Saving your home is not any walk in the park. Thus, consider all your options, and make wise decisions to prevent property foreclosure.