Owning a home is everyone’s dream and getting a mortgage loan is one way of realizing this dream. Some homeowners and låneformidler clear their mortgage payments without struggling. Others find it hard to stay consistent with their payments, risking their homes for foreclosure.
The coronavirus has caused many people to lose their jobs, face reduced working hours, or become unable to work. As a result, making the once-affordable mortgage payments has become impossible.
Before the virus affected the U.S. economy, it was estimated that approximately 250,000 property owners faced foreclosure every. These numbers have so far increased, forcing most homeowners to seek alternative financial assistance to be able to settle their mortgage payments.
Assistance for Homeowners Affected by the Virus
The federal government has offered to assist homeowners through agencies such as the Federal Housing Authority and Freddie Mac, which have been supporting millions of homeowners. Eligible owners who may have lost their jobs due to COVID-19 may request a reduction or suspension of their mortgage payments for a period of up to one year.
Foreclosure and evictions are also being suspended for Freddie Mac and Fannie Mae customers. This move will secure about half of the homes obtained through a mortgage in the United States.
Private lenders such as financial institutions, banks, and private investors have also introduced a policy that will allow customers to skip mortgage payments for three months in case the customer is faced with reduced income or infection. The policy may be extended to one year if there is a continued impact of COVID-19.
Besides having such policies in place, you must work hard to ensure that you do not lose your home due to financial constraints. Your credit rating will be impacted negatively should you let your home get into foreclosure. Find out the financial assistance alternatives available and make use of them. Contact a nonprofit credit agency in your area for more information as you also need to get in touch with your lender to explain your predicament.
One way to avoid foreclosure is by modifying your home loan. Modifications make it easier for borrowers to repay their mortgage until a better financial solution is determined. They include the reduction of remaining principal or interest rates or prolonging the repayment period.
Besides loan modification, you can also take advantage of the following financial assistance options:
The federal government offers homeowners with assistance in making their mortgage payments. Some of the assistance programs are still in effect while others have expired. To find out the kind of assistance programs available in your area, contact the housing office within your area.
There are several charity groups that assist in a mortgage payment. Each of the groups has unique requirements. Popular charity groups that you may consider include The United Way, Catholic Charities, Salvation Army, Vincent de Paul Society, and several other local authorities within your area.
Besides charities, you may also seek help from your friends and family members, although this should be your last option.
Scammers are all over seeking to trick financially challenged individuals of their money. To avoid foreclosure scammers, do not respond to individuals who contact you with deals that seem too good to be true. Contact HUD or other agencies within your area to find out more about scammers’ tactics and how to report them. Beware of individuals who request you to pay a certain fee for mortgage repayment assistance, as well as strangers who instruct you to disclose your financial information.
There are many financial assistance options to avoid foreclosure of your homes. Just be sure to avoid foreclosure scams to avoid having problems in the future.