First things first: Our local market here in central NC is still very much a seller’s market. We frequently see multiple offer situations where buyers are competing to get a home because inventory is extremely low. And it’s still a good time to buy a home due to interest rates remaining low. You may currently have more equity in your home than you think. If you find yourself in a dilemma over mortgage payments, get in touch with us first to see what your home’s value is. Now let’s get into the nitty-gritty…
Since the first quarter of 2020, mortgage delinquency and the amount of people entering into a mortgage forbearance plan has increased. One very important thing to remember about a mortgage forbearance is that you are responsible for paying back those missed monthly payments; in other words, the payments are not forgiven, they are just on hold for a period of time while you are experiencing financial hardship. If you misunderstand the terms of your forbearance plan or you cannot make your payments on time, you risk entering into foreclosure and losing your home.
That said, as long as you can find the proper guidance to help you understand what type of plan is best for you, if you cannot pay your mortgage because you have lost your job to Covid-19, a forbearance plan may be an option for you to keep your home. So how do you know if you qualify for mortgage forbearance? If you have a federally backed loan such as FHA, VA, USDA or a Fannie Mae or Freddie Mac backed loan, under the Cares Act these loan services must offer you a forbearance plan.
It is recommended that you do not contact the company that services your loan directly. You want to know exactly what you are getting into with the terms of a forbearance. A mortgage servicer is in essence a loan collector and they are working to collect the greatest amount of return on your mortgage so they may not present you with all the options that would be best for you. The Department of Housing and Urban Development has a list of approved housing counselors. Look for a counseling agency that provides advice at no charge and is not paid by a lender.
If you have not been able to pay your mortgage or if you are currently on a forbearance plan, please contact us to discuss your options! As the year goes on, it is predicted that many people will enter into foreclosure. Call Cindy directly at 336-214-7201 if you need help in deciding what to do. All conversations are completely confidential.
More information can be found on the website of the Housing Counseling Services, Inc to find out how you can prevent foreclosure on your home!