The federal foreclosure moratorium on mortgage foreclosures has ended and homeowners are now required to resume mortgage payments that were paused under the moratorium for over a year. In addition, the Federal Housing Administration (FHA) announced an extension of its moratorium on evictions for foreclosed borrowers and their occupants through the end of September 2021.

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While evictions have been halted in parts of the country, additional relief for homeowners who have fallen behind on their mortgages has not been specified. The CARES Act was the first piece in providing protection to buyers unable to make their payments with two types of protection including foreclosure moratorium and the ability for borrowers to act for forbearance from their lenders.

 

What Happens Now that Foreclosure Moratorium Has Ended?

So now that pandemic-related protections are expiring, help is still available for borrowers to prevent homes from going into foreclosure. The Consumer Financial Protection Bureau will still allow borrowers who are still experiencing financial hardships to receive forbearance extension if they have not reached the maximum months for forbearance. According to Mark McArdle, the assistant director for the Consumer Financial Protection Bureau, borrowers who have not entered forbearance can now enter and individuals who have exited can reenter if they choose.

 

Your Mortgage Payment Options

Now that the foreclosure moratorium has ended, homeowners have various options for their mortgage payments. Here are the five main options that homeowners should consider:

  • Reinstatement
  • Payment Plan
  • Deferral
  • Refinance
  • Loan Modification

If these options do not work for the individual circumstances, homeowners can also choose to sell their home and leave with equity.

 

Next Steps

If you’re facing foreclosure as a result of the foreclosure moratorium expiring, consider reaching out to your loan servicer. By speaking with them, they will be able to dictate next steps. If you choose not to communicate, you may be speeding up the foreclosure process. According to the Consumer Financial Protection Bureau, the mortgage loan servicers can proceed with foreclosure if they have not heard from the homeowner after 90 days.

Foreclosure can be scary and in the event that you’re faced with this difficult situation, the team at Metropolitan Title is here to help. As Indiana’s Title Company we work with mortgage loan servicers and real estate professionals across the state and would be happy to connect you with any of these individuals.

 

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