Mortgage forbearance and eviction extensions run through redlands mortgage forbearance and eviction extensions run through a troop mortgage forbearance and eviction extensions run through synonym mortgage forbearance and eviction extensions run through walls mortgage forbearance and eviction extensions runza mortgage forbearance and eviction extensions runners mortgage forbearance and eviction extensions chrome mortgage forbearance and eviction extensions store mortgage forbearance and refinance mortgage forbearance end date mortgage forbearance agreement

Mortgage forbearance and eviction extensions run through September 2021

Mortgage forbearance and eviction extensions run through September 2021

In addition to its vast human toll, the pandemic has ravaged the financial resources of millions of US homeowners. Since the Coronavirus Aid, Relief, and Economic Security Act passed last year, more than 9 million Americans hit pause on making monthly mortgage payments, entering what's technically referred to as a "forbearance." 

But there are hundreds of thousands of additional homeowners who may qualify for relief. A 2020 Urban Institute survey found that approximately 530,000 delinquent homeowners had not requested forbearance relief -- despite being eligible. 

Why? A National Housing Resource Center survey from last year suggested that homeowners may have feared having to make a significant lump-sum payment at the end of forbearance -- it's actually just one of many options -- or simply not known about the program. Others may have had difficulty connecting with their loan servicer. 

The CARES Act's homeowner protections were set to expire at the end of June 2021. But the US Federal Housing Administration has announced revisions to measures for struggling homeowners. Highlights include:

• An end to the foreclosure moratorium on single-family foreclosures on July 31
• A moratorium on single-family eviction extended from July 31 to Sept. 30, 2021
• An extension of the deadline to request mortgage forbearance from June 30 to Sept. 30, 2021
• The extension of a program to help homeowners reduce monthly mortgage payments by 25% or more

Whether you've already resumed making mortgage payments, are still in forbearance or are in danger of defaulting on your loan, there are new protections for homeowners like you. Read on to learn everything you need to know about mortgage forbearance and the new extensions. 

What is forbearance protection?

Entering into forbearance allows you to hit pause on making your monthly mortgage payment. The missed payments go into a separate loan bucket if you have a federally backed loan or move to the end of your mortgage with Fannie Mae or Freddie Mac. In both cases, forbearance has a 0% interest rate, no fees and is repayable when you refinance, sell or when the mortgage term ends. A few other important things to know:

• Accepting forbearance assistance won't hurt your credit score. If your account is current when you enter forbearance, your loan servicer cannot report a pause in payments as "delinquent" to the credit reporting agencies. If you're behind on your mortgage when you enter forbearance, your loan servicer cannot report your account as more delinquent while your forbearance period is active. You can find additional information about this from the Consumer Financial Protection Bureau. 
• You will not be required to repay your missed payments in a lump sum. 
• Legal proceedings like foreclosure are suspended.

The US Department of Housing and Urban Development offers resources to help you navigate the process. "HUD has a website to help you find a housing counselor near you for people who need that resource individually," said Alanna McCargo, a HUD Senior Advisor for Housing Finance. "If they don't feel like they have enough information, a local housing counselor will work with them and the servicer to get them into the right space."

What are my options?

On June 25, the US Federal Housing Administration announced forbearance relief options. If you're struggling to pay your mortgage, here's an updated overview of what you can do.

Request forbearance

The new guidelines have extended the deadline for first-time COVID-19 forbearance requests. Homeowners who have not previously been in forbearance can now request assistance until Sept. 30, 2021. The table below summarizes your options based on the forbearance period start date. (If you aren't sure who owns your loan, you can look it up using the Mortgage Electronic Registration Systems website.)

FHA COVID-19 forbearance periods (updated June 25, 2021)

Initial forbearance date	First forbearance period	Second forbearance period	Third forbearance period	Maximum forbearance period
March 1, 2020 to June 30, 2020	Up to 6 months	Up to 6 months	Up to 6 months (in 3-month increments)	Up to 18 months
July 1, 2020 to Sept. 30, 2020	Up to 6 months	Up to 6 months	Up to 3 months	Up to 15 months
Oct. 1, 2020 to June 30, 2021	Up to 6 months	Up to 6 months	None	Up to 12 months
July 1, 2021 to Sept. 30, 2021	Up to 6 months	None	None	Up to 6 months

Extend existing forbearance

Depending on your loan servicer and how long you've been in forbearance, you may qualify for an extension to help you get back on your feet. The table above lists your choices, and if you don't see an option that works for your situation, McCargo urges homeowners to reach out to HUD or a housing counselor.

"The nature of the pandemic, because it's impacted people in so many different ways, has streamlined opportunities for people that are delinquent on their FHA mortgages," she said. "This administration has been really focused on making sure that we can do everything in our power to keep people in their homes, especially since people have a lot of home equity and, therefore, their wealth tied up in property. It's their livelihoods, and so it's really important to try to do what we can to work with folks." 

Request a reduced monthly mortgage payment amount

If you are ready to exit forbearance but your monthly payment is still too high, modifying your loan term could help you find an affordable solution.

For FHA loans, the COVID-19 Advance Loan Modification (aka COVID-19 ALM) program is available to reduce monthly mortgage principal and interest payments by up to 25%. ALM requires loan servicers to review eligible borrowers' accounts within 30 days of the expiration of the forbearance period. Better still, you aren't required to contact your servicer to begin this process, but you will need to sign a modification offer from them to officially change your mortgage terms. You can find more details about COVID-19 ALM process here. 

If Fannie Mae or Freddie Mac services your loan, there are also ways to lower your monthly payment. "Since every lender and servicer is different, the best way to find out what options exist is to reach out to your bank and ask," said Brandon Howland, a loan officer at 1st Security Bank in Everett, Washington. "For clients in forbearance who are looking to refinance, I advise them to start making on-time payments as soon as possible if that is their goal." 

For clients who don't qualify for loan refinancing, Howland recommends loan deferral. "[The bank] essentially takes the delinquent amount and moves it to a second mortgage lump sum and attaches it to the original mortgage," he said. "It would bring the loan current, and then when the client sells or refinances, they would just have to add this amount to be paid, just like if it was a cash-out refinance to pay off a car loan, for example."

New changes to foreclosure and eviction protections for homeowners 

In addition to extending forbearance provisions, the Biden administration extended the moratoriums on foreclosures and evictions to July 31, 2021. Mortgages covered under the extended protections included:

• All FHA-insured single-family mortgages and home equity conversion (reverse) mortgages. Vacant or abandoned properties do not qualify. 
• Multifamily FHA mortgages that have been current on payments as of Feb. 1, 2020
• All Fannie Mae and Freddie Mac-owned single-family mortgages 
• FHA, Fannie Mae or Freddie Mac-owned real estate owned properties acquired by private mortgage lenders through foreclosure or deed-in-lieu of foreclosure transactions.
• USDA Multifamily Housing Communities

On July 30, the FHA acknowledged an end to the foreclosure moratorium, but extended the eviction moratorium to Sept. 30, 2021. Under federal law, a servicer cannot foreclose your home unless your mortgage is more than 120 days past due. There can be exceptions depending on your forbearance terms or if you enrolled in a "loss mitigation program." Although the rules vary by state, a servicer usually must notify a borrower before they begin foreclosure proceedings.

If you're facing foreclosure or eviction, contact your housing counselor to help you work with your loan servicer. You can also contact the CFPB, which can help you find an affordable or no-cost attorney in your area. 

What happens when my forbearance period ends? 

At least 30 days before your final forbearance period ends, your loan servicer will contact you to discuss next steps. If you have additional forbearance periods available, you will need to reach out to your servicer to request an extension. If you have exhausted your forbearance options, your servicer will help you choose an exit strategy. 

Note: Don't forget to request everything in writing to make sure you understand the new terms of your mortgage. You may also want to review the agreement with your housing counselor or attorney.

What are my repayment options? 

Your options for exiting forbearance depend on the type of mortgage you have and your financial stability. Options across all loan types are below.

Option for Exiting Covid-19 Forbearance

Option	Situation	How it works
Repayment plan	You can afford to pay more than your regular mortgage amount.	A portion of the forbearance amount you owe is paid monthly with your mortgage.
Deferral	You can pay your regular monthly mortgage amount but can't afford to increase it.	The unpaid forbearance amount is moved to the end of your loan and repaid when you refinance, sell or the mortgage term ends.
Partial claim	You can pay your regular monthly mortgage amount but can't afford to increase it.	This will either move your missed payments to the end of your loan or put them into an interest-free second mortgage called a COVID-19 Standalone Partial Claim, repayable only when you refinance, sell or the mortgage term ends.
Modification	You can't afford to pay your regular monthly mortgage amount.	Your mortgage and missed payments are combined and reduced to an affordable monthly amount. Lower payments mean it will take longer to pay off your loan.
Lump-sum reinstatement	You want to pay back all of your missed payments at once.	Most loan servicers can't require you to make a lump-sum payment, but it's an option if you choose to do so.

Special provisions for federally backed loans

Note that the FHA, USDA and the Department of Veterans Affairs do not require a lump sum repayment when forbearance ends. In addition, homeowners with VA loans may qualify for further COVID-19 assistance as the Biden administration conducts ongoing evaluations of veterans' vulnerability. Here's a partial list of loan service agencies that may provide more information:

If your loan isn't backed by a federal agency, call your servicer directly to learn about your options. Be sure to ask about loan terms, fees and interest rates -- and, as always, request written copies to review before signing a new mortgage agreement or modification.

---

Source

Navigating foreclosure how to find help for seniors navigating foreclosure how to find help for depression navigating foreclosure how to find help for elderly parents navigating foreclosure how to buy navigating foreclosure how does it affect navigating foreclosure how it works navigating foreclosure listings navigating foreclosure moratorium navigating foreclosure sales

Navigating foreclosure: How to find help, repair your credit and bounce back

Navigating foreclosure: How to find help, repair your credit and bounce back

The COVID-19 pandemic -- and its economic fallout -- have put millions of homeowners at risk of losing their homes. Consumer Financial Protection Bureau industry data in April showed that almost 3 million homeowners are behind on their mortgage payments. 

While the CARES Act provided temporary relief for homeowners, its moratorium on foreclosures ended on July 31. Although this means lenders can proceed with the foreclosure process, a moratorium on foreclosure-related evictions has been put in place by the Federal Housing Administration until Sept. 30. The White House has also extended the forbearance enrollment period for federally backed mortgages through Sept. 30, giving homeowners more time to enroll in housing protections that could last for up to 12 months.  

That said, some homeowners are still facing the resumption of monthly mortgage payments that have been paused for over a year -- and as a result, a mountain of debt.

If you own a home and are concerned about making mortgage payments, it's important to understand the foreclosure process. We'll walk you through everything you need to know -- from the best practices for avoiding it to surviving the aftermath. 

You can find out more information about buying a foreclosure here.

What is a foreclosure? 

Foreclosure starts when a homeowner has missed payments for a certain length of time -- usually, 90 to 120 days. At this point, the lender will attempt to recoup what they're owed on a mortgage. Once you're a few months late on your mortgage payment, the lender will put your loan into default.

If you don't make your mortgage payments for, say, three months, your lender can start a legal process to take ownership of your home in order to sell it. This allows them to get some of the money you still owe on your mortgage back.

The steps of the foreclosure process vary from state to state. 

The foreclosure process

Foreclosure doesn't happen overnight. Your mortgage lender is required to notify you well in advance of when your home officially enters foreclosure -- also known as preforeclosure. 

Preforeclosure

After you miss one mortgage payment, you might enter a preforeclosure period, but you often have another month to pay the balance owed before the bank takes serious action. 

"Making your mortgage payment after the 1st of the month won't be considered late," says James McCann, branch manager at Cornerstone First Mortgage. "Most mortgage servicers won't charge a late fee until the 15th of the month and even when they do, it's usually nominal. Mortgage payments aren't reported late until the 30th of the month."

At that point, your lender sends you a notice. Whether you just needed a little extra time or making the payment simply slipped your mind, if you make your missed payment at this time, the preforeclosure process stops. You'll probably need to pay a late fee and your credit score might take a hit, though.

If you miss two mortgage payments, the letters become more serious. At this stage, you'll receive a demand letter requesting the missed payments. You can still stop the foreclosure process at this point by sending in the money you owe right away.

After three to four months of missed payments (varies by lender), you'll get a notice of default. This notice will usually lay out a grace period (often 90 days) during which you can make up the money you owe to avoid foreclosure. This grace period is called the reinstatement period. If you don't take advantage of this final window to get caught up on your missed payments, your lender officially starts foreclosure.

Foreclosure

At this point, your mortgage lender starts the process of taking ownership of your home. This works because mortgages are secured loans, which means they're backed by collateral -- in this case, your home. 

When homeowners are unable to continue making mortgage payments, lenders start the foreclosure process to take back their collateral. Foreclosure ends with the lender either selling the home or adding it to their real estate portfolio. This allows the lender to recoup the money the homeowner was unable to pay. 

Types of foreclosures 

There are three different types of foreclosures, but processes will vary depending on where you live. Most states employ one of the first two types of foreclosures: 

Judicial foreclosure

A judicial foreclosure is an option in all states. During this process, the lender files a lawsuit with the court to initiate the foreclosure process. The homeowner then gets a notice of the suit in the mail and has 30 days to pay all of the money they owe. If they don't, the local sheriff's office or the court will sell the house at an auction and give the proceeds to the lender. 

Power of sale

Also called a statutory foreclosure, this type of foreclosure is legal in most states, provided your mortgage has a power of sale clause. This clause says that if your mortgage lender demands payment and you continue to fail to pay for the period of time laid out in the clause, the lender can sell the home to recoup their money. 

Strict foreclosure

The rarest type of foreclosure, strict foreclosure, is often avoided unless the outstanding mortgage amount is greater than the property's current value. The process is similar to a judicial foreclosure in that the lender files a lawsuit, but rather than selling the property at auction, the property enters the lender's real estate portfolio once the foreclosure is complete. 

Avoiding foreclosure

Foreclosures are stressful. But you can often avoid foreclosure, especially if you take steps as soon as you struggle to make your mortgage payments. Here are some tips to help with avoiding foreclosure.

Talk to your lender ASAP

Lenders don't want you to enter into foreclosure. They would much rather have you continue to make your payments (allowing them to make income off your mortgage's interest). If you're struggling to make a payment, reach out to see what support your lender can provide. 

"Talk with your current mortgage servicer to see if there's anything they can do to help," McCann says. "Your lender might offer a loan modification or forbearance plan that would allow you to lower or pause your payments." 

Consider selling

With real estate property values at notably high levels in many regions, homeowners who think they won't be able to keep up with their mortgage payments can consider selling before they end up in a foreclosure situation. With the proceeds from your home sale, you can pay off the outstanding balance of your mortgage and avoid foreclosure -- and the eviction and major hit to your credit score that comes with it. 

You don't necessarily go back to renting, either. McCann recommends working with a realtor to find out if you can downsize to reduce your monthly mortgage payment.

Explore a refinance

With mortgage rates at historic lows right now, refinancing can help you get through a financially challenging season -- and save you money over the life of your loan. Refinancing could allow you to lock in a lower rate, reducing your monthly mortgage payment.

"You can often time your refinance to skip a mortgage payment, which could give you a little time to get back on your feet," McCann says.

You might be able to get a short refinance, which means your lender forgives some of your outstanding balance, then refinances the rest.

Foreclosure assistance programs

There are also assistance programs that can serve as helpful tools in avoiding foreclosure. 

Until Sept. 30, you can enroll in a forbearance program if you have a federally held mortgage, e.g., FHA, VA, USDA and some Freddie Mac and Fannie Mae home loans. 

While federal programs beyond the COVID-19 forbearance are currently lacking, you can also get help from a housing counselor. You can click your state on their map to find information about foreclosure avoidance counselors near you. It's well worth choosing one approved by the US Department of Housing and Urban Development to help avoid foreclosure scams. 

Beware of foreclosure assistance scams

Unfortunately, unsavory individuals and organizations often take advantage of people facing financial hardship and foreclosures. And they may do it under the guise of old programs. Be wary of mortgage assistance from groups that recommend expired assistance programs like the FHA Home Affordable Program or the Making Home Affordable program. Although these programs are legitimate, they were established to help after the subprime mortgage crisis of 2008 and aren't accepting new applicants. 

For a full list of foreclosure assistance scams to avoid, review this guide from the Office of the Comptroller of the Currency. 

Surviving foreclosure

Avoiding foreclosure isn't always possible -- and it's not a financial death sentence. If none of the above resources can help you avoid foreclosure, your first step should be to find safe housing for yourself and anyone who lives with you.

From there, work on establishing a consistent income stream and building up your savings. Your credit score will take a dive after your foreclosure, but managing your money responsibly -- paying your bills on time and making sure you don't use too much of your other available credit, including credit cards -- will help you to rebuild it. From there, it's a waiting game. After seven years, the foreclosure will fall off your credit report and you'll have a fresh start again.

---

Source