If you are struggling to make your mortgage payment in Oak Park or elsewhere in the greater Chicago metropolitan area, you should know that you are not alone. While recognizing that thousands of other families in the U.S. are struggling with the risk of foreclosure during the economic downturn caused by the coronavirus pandemic will not pay your bills, it can be helpful to understand that consumer advocates understand this dangerous trend.
According to a recent article in HousingWire, some experts are predicting an oncoming wave of COVID-19 foreclosures that will surpass those of the Great Recession more than 10 years ago. At the same time, homeowners do have advantages and protections that they did not have previously. We want to say more about the recent article, and about some of the ways that homeowners affected by the coronavirus pandemic may be able to avoid foreclosure.
Healthcare Crisis Foreclosures Could Surpass 2008 Levels
It was not very long ago that the housing market crash of 2008 resulted in millions of home foreclosures. Between 2006 and 2016, experts estimate that about 10 million homes went through the foreclosure process. While that “freefall of the housing market nearly took down the entire U.S. economy” in a way that perhaps seemed like a once-in-a-lifetime occurrence, now the COVID-19 emergency is more than threatening to do the same. The reality is that millions of Americans have lost their jobs and cannot find new ones due to the pandemic and business closures. A wide variety of industries are experiencing effects of the coronavirus pandemic and the economic downturn, from blue-collar and manual labor jobs to white-collar professions. Currently more than 22 million people have filed for unemployment benefits, and HousingWire predicts that 15 million more will occur by its next report.
Currently, about 3 million mortgages nationwide are in forbearance due to the pandemic and job loss. Just as homeowners are unable to make their monthly mortgage payments, millions more could seek forbearances and alternatives to foreclosure in the coming weeks and months. These actions are taking place when lenders are restricting the kinds of loans they are offering and, in some cases, even the lenders are going out of business. All of these facts are leading experts to worry that we could ultimately see rates of home foreclosure that surpass those of the 2008 financial crisis.
Positive Numbers and Foreclosure Avoidance
Although tens of millions of Americans are without a job, there are some protections that did not exist during the 2008 foreclosure crisis. First, disaster relief money and more eligibility for unemployment claims has resulted in some people being able to make ends meet for the time being. In addition, a number of forbearance programs are currently in existence, allowing homeowners to delay making a mortgage payment for up to 12 months if they are experiencing a COVID-related hardship.
If you may be at risk of foreclosure, you should learn about forbearance options and discuss other potential measures with an Oak Park foreclosure defense lawyer.
Contact a Foreclosure Defense Attorney in Oak Park
If you are struggling to make your mortgage payment and are at risk of foreclosure, an experienced and compassionate Oak Park foreclosure defense lawyer can discuss your options with you. Contact the Emerson Law Firm for more information.
See Related Blog Posts:
Avoiding Foreclosure During the Coronavirus Pandemic
Foreclosures Suspended Due to Coronavirus