The Incredible 2022 Guide To Fast Mortgage Relief
(UnitedVoice.com) – During the height of the COVID-19 pandemic in 2020, the Federal government halted mortgage foreclosures. The CDC said if people were not in homes, they would likely contribute to the spread of the highly contagious virus. For 2020 and most of 2021, foreclosures were at an all-time low due to government rules. In August 2021, the US Supreme Court ruled the eviction and foreclosure rules were unconstitutional.
Soon after, foreclosure rates increased significantly. In January, they were seven-fold over December 2021. Approximately 33,000 mortgage loans entered the foreclosure process. In February, mortgage providers repossessed 2,634 homes for a 70% increase over February 2021. Media outlets aren’t discussing the issue much, but the pandemic hurt many people financially. Even though the government can no longer protect your home from foreclosure, there are mortgage relief programs to help you.
Mortgage Relief Programs
The government isn’t the only entity capable of helping you. Mortgage providers prefer not to foreclose, if possible. It costs them time and money as well. There are four programs you might be able to take advantage of in 2022 if you’re struggling to catch up on your mortgage or are falling behind due to an unforeseen personal issue.
So, let’s explore the programs to help you understand what choice may work best for your situation.
Refinancing your home may be a solid option to reduce your monthly payments if you qualify. The trick is to get a new mortgage with a lower interest rate and extend the loan term. As home prices rise, you may have a significant amount of equity in your home that you’re unaware of right now. While interest rates are still low, it might be the perfect time to refinance a home. Credit worthiness requirements may not be as strict either.
If you’re not sure you qualify, it’s still worth talking to a lender. Sometimes, they can help in ways you may not anticipate.
You may qualify for a streamlined refinance plan if you have a government-backed loan. These include FHA, VA, or USDA mortgages. It’s simple, fast, and easy to qualify for a new loan. Here’s the helpful part: You don’t need to verify your income or employment in most cases. Lenders who don’t look at your credit score and forgo a home appraisal might even be available.
Beware, if you have a conventional mortgage or one through Fannie Mae or Freddie Mac, they aren’t eligible. Also, while streamlined refinance loans have fewer requirements, they still require a history of on-time payments and a clear benefit to the new loan (i.e., lower interest rates or monthly payments.)
A mortgage forbearance may be a good option if you need a temporary pause in your monthly mortgage payments due to financial hardship. It’s important to be aware mortgage companies don’t forgive your debts. As soon as the forbearance ends, your mortgage provider will require you to repay what you weren’t paying during the forbearance in equal installments in addition to your regular mortgage payment. They may also grant you an option to defer the payments until you sell the house, refinance, or pay off the mortgage.
So, what if you’re in a situation where you are exiting a forbearance but don’t qualify for a refinance? The final option is a loan modification. A modification is for mortgage holders whose financial situation is not temporary. In this situation, your mortgage provider may agree to lower your interest rate or extend your loan to make monthly payments more affordable.
FHA, VA, and USDA loans were recently given a new means through a mortgage stimulus program to lower payments by as much as 25% through a loan modification program if you’re facing foreclosure.
If you want more information, check the resource provided by the Consumer Financial Protection Bureau. Many people are in a situation they never expected. These programs exist to help you and millions of others going through tough times. Remember, the best thing you can do is contact your mortgage provider to seek help.
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