What does the extension on the foreclosure ban mean for you? If you are not covered by the extended foreclosure ban or need assistance with foreclosure avoidance after March, what can you do?
Getting More Information About President Biden’s Foreclosure Actions
The most recent stimulus bill extended protections through the end of January, according to a recent article in CNN Business, and President Biden’s executive order will extend those protections for federally backed mortgages until March 31. In addition, according to the article, President Biden asked the Department of Veterans Affairs, the Department of Agriculture, and the Department of Housing and Urban Development (HUD) to “accept applications for forbearance for federally guaranteed mortgages until that time as well.”
For anyone with a federally backed or federally guaranteed mortgage, the recent actions taken by the president could provide more temporary relief. Yet as the article points out, some “administration officials say the bans on evictions and foreclosures are not enough.” Moreover, as we pointed out, homeowners who do not have federally backed or federally guaranteed mortgages are not covered. Approximately 70% of all U.S. mortgages are federally backed, according to an article in the Chicago Tribune. Illinois protections have also been able to help homeowners with private mortgages. That article reports that about 1.28 million Illinois households say that they are unable to pay their mortgages, which is approximately one-third of all Illinois residents who have mortgages.
What You Should Do if You Cannot Pay Your Mortgage
If your mortgage is not covered by an existing foreclosure ban and you could be at risk of foreclosure due to the inability to make mortgage payments, you should find out about options by speaking with an Oak Park foreclosure defense attorney. You may be able to prevent foreclosure with actions such as:
- Filing for Chapter 13 bankruptcy;
- Seeking a mortgage loan modification;
- Requesting a forbearance from the lender; or
- Refinance your mortgage if you are not already significantly behind on payments.
Being unable to make your mortgage payments can be incredibly stressful, especially when you are concerned that you may be at risk of foreclosure. There are many different options that may be available to you to avoid foreclosure, even if your mortgage is not one of the federally backed mortgages included in the recent extension of the foreclosure ban. Do you have questions about avoiding foreclosure in Illinois? One of the experienced Oak Park foreclosure defense attorneys at our firm can help you. Contact the Emerson Law Firm to learn more about the services we provide to homeowners and other consumers in and around Oak Park.
See Related Blog Posts:
Cook County Anticipates Wave of Foreclosures and Evictions
What Can I Do to Avoid Foreclosure During the COVID-19 Pandemic?