Friday, March 26, 2021

How Long Can Foreclosure Suspensions Last?

For homeowners in Oak Park and across the country, the suspension of evictions and foreclosures during the pandemic has meant that concerns about losing a home due to the inability to make mortgage payments have not loomed as prominently as they likely would have given the effects of COVID-19 on the economy. However, each time the eviction and foreclosure moratoriums have been extended, they have had a clear end date. According to a recent CNN article, struggling homeowners should begin making plans to ensure that their homes do not go into foreclosure when the current moratorium expires. As that article underscores, foreclosure suspensions simply cannot last forever.

Consider the Current Moratorium

The initial eviction and foreclosure moratoriums that went into effect early on in the pandemic were extended, but homeowners should keep in mind that expiration dates are not too far in the future. The current foreclosure moratorium will expire at the end of June 2021, and the current statistics are grim when it comes to struggling individuals and families who could be at risk of losing their homes. As the article underscores, there are about “six million families behind on their rent and three million behind on their mortgage.”

What will happen to struggling homeowners with the expiration of the foreclosure moratorium? Eligible homeowners currently can have a forbearance of up to 18 months, with unpaid mortgage payments during that time period getting added onto the total amount of the mortgage so that the payments are made up later on. Some homeowners will be eligible to seek a mortgage modification so that their monthly payments are lowered. In addition, according to the article, “Congress has appropriated $10 billion in mortgage payment relief, which will likely go towards deeper assistance for those for whom the existing relief isn’t enough.”

Options for Homeowners When the Moratorium Ends

When the foreclosure moratorium ends and mortgage payments are due, what options will homeowners have if they still have not recovered financially from the pandemic and have not been able to find employment? Generally speaking, homeowners may be able to consider similar foreclosure-prevention options that were available prior to the pandemic, from mortgage modifications to the possibility of filing for Chapter 13 bankruptcy. Yet it is important to remember that Chapter 13 bankruptcy is only an option for staying in your home and avoiding foreclosure if you have an income and are able to show that you can make the payments associated with your debt repayment plan.

Struggling homeowners should also speak with a foreclosure defense attorney about additional relief options that may become available by the time mortgage payments are due. Your foreclosure defense lawyer can discuss the variety of options that may be available to you to avoid foreclosure and can help you with a Chapter 13 bankruptcy filing if that is the best option for you and your family.

Contact Our Oak Park Foreclosure Defense Lawyers

Do you need assistance avoiding foreclosure? Our Oak Park foreclosure defense attorneys are here to help. Contact the Emerson Law Firm for more information about preventing foreclosure and remaining in your home.

See Related Blog Posts:

Extended Foreclosure Moratorium Will Help Homeowners

Foreclosure Ban Extended

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