WHAT TO DO IF YOUR CARES ACT MORTGAGE FORBEARANCE RUNS OUT
LEARN HOW TO SELL YOUR HOUSE FAST IF YOU ARE BEHIND ON MORTAGE PAYMENTS
When the COVID-19 pandemic spread throughout the U.S. in January of this year, no one could have predicted the financial toll it would take on the American economy. Millions of homeowners lost jobs and fell behind on mortgage payments and monthly expenses. To prevent a record number of foreclosures from happening, the government enacted the CARES Act Mortgage Forbearance program.
Under the mortgage forbearance plan, homeowners could reduce or pause their mortgage payments, giving them time to re-establish their finances, find a job, or even sell their house. While the CARES Act has helped homeowners, it is only a temporary solution. After December 31, 2020, lenders can resume the foreclosure process once the forbearance period ends.
LEARN MORE ABOUT THE CARES ACT MORTGAGE FORBEARANCE PROGRAM
The Coronavirus Aid, Relief and Economic Security, or CARES, Act, passed in March, included special aid for homeowners like you. The law makes it much easier for you to hit a pause button on your mortgage — for up to 180 days, giving the economy time to recover and time for you to get employment. The program covers all federally-backed loans such as
- Fannie may
- Freddie Mac
- FHA loans
- Specified reverse mortgages
Forbearance is a form of repayment relief that allows you to temporarily suspend or reduce mortgage payments. If you are in a short-term financial bind, a forbearance can save your home from foreclosure without putting a major dent in your credit, buying you time until you get back on your feet. Before the CARES Act, forbearances were typically granted by lenders only after a careful evaluation of financial hardship.
Now federal law makes asking for forbearance simple if you have coronavirus-related health or financial problems. If you have a federally-backed mortgage, you simply need to contact your lender and let them know you won’t be able to pay your mortgage bill due to the current public health crisis. Lenders are required to approve forbearances regardless of your delinquency status.
WHAT HAPPENS WHEN YOUR MORTGAGE FORBEARANCE PLAN ENDS?
The mortgage plan is designed to last up to 180 days. If you are still in a poor financial situation, you may request an extension of 180 more days. However, after December 31, 2020, lenders may proceed with foreclosure or bankruptcy once your COVID-19 mortgage foreclosure period ends. So, if you are still behind on mortgage payments, you may not be able to catch up or resume your current payments.
If you face foreclosure and may lose your house to the bank, one alternative is to sell your house fast as-is for cash. A local home buyer in Cincinnati, OH, can look at your house, make a fair cash offer, and close the sale in as little as seven days. This frees you from foreclosure and may even save your credit. It is also a faster option than listing your house on the market.
WHAT ARE THE CONSEQUENCES OF LATE MORTGAGE PAYMENTS?
Everybody is late on their mortgage payments from time to time. A homeowner may occasionally miss the grace period, get hit with a late fee, but make up the payment in a week or two. When the late mortgage payments start adding up, they create a domino effect that hurts your financial portfolio across the board.
Poor Credit Score
Your mortgage can take up to 35 percent of your overall monthly debt or reportable bills (utilities, etc.). As a result, every late payment is magnified on your credit score. Once you reach three late payments or more or go into foreclosure, it can prevent you from getting a loan of any kind for two to three years.
Unmanageable Monthly Budget
If you funnel all your monthly into your mortgage to catch up on your payments, it can create instability in your monthly finances. You may eventually get behind on all your payments and have difficulty keeping up with your monthly expenses. Eventually, your late mortgage payments throw your entire budget into a tailspin.
When it comes to managing your mortgage, the worst-case scenario is a foreclosure. The bank may start the process of repossessing your house if you are late on your payments for 90 days or more. Foreclosure gives the bank the right to reclaim the house, kick you out, and resell your house at auction. However, it doesn’t end there. If the bank does not recoup 100 percent of the loan, they may force you to pay the rest of it, even if you have been evicted from the property.
AVOID FORECLOSURE IN 3 EASY STEPS
Tacoma Cash Offer takes the burden out of selling your house the traditional way. If you want to avoid needless repairs, listing & showing costs, and closing costs, then follow our three-step process for a fast cash offer.
1. Contact a Local Cash Home Buyer
We are local home buyers that live in the Tacoma, Washington area. Simply call us, and we can schedule a quick visit to your property. Tell us the details of your property and let us assess your house.
2. Get a Fast Cash Offer
If we decide to buy your property, we’ll make a cash offer. Although we do not pay 100 percent of your home’s market value or your asking price, we will make you a fair offer. Plus, you receive cash for your home without all the hassle.
3. Schedule Your Closing Date
If you accept our offer, then we schedule a closing date. You can have cash in your hands in as little as seven days after closing. Plus, we pay all the closing costs! Selling your house for cash has never been easier.
WE BUY HOUSES AS-IS IN THE FOLLOWING AREAS
|Bonney Lake||Federal Way|
Sell My House Fast in Tacoma, Washington
If you need to sell your house fast, then contact Tacoma Cash Offer today. We pay 100 percent cash, close in as little as seven days, and help you avoid unnecessary fees. Call us at (253) 300-2897 to schedule a quick walkthrough with a local cash home buyer.