When homeowners cease their mortgage loan repayments, foreclosure ensues. This leads the bank or the mortgage lender to seize the property, often against the homeowner’s wishes.
The End of Federal Eviction & Mortgage Foreclosure Moratoriums
Many relied on these federal rules, which ended on July 31, 2020, for their financial survival during the COVID-19 crisis. Notably, even though these moratoriums have officially ended, borrowers with federally backed loans can avail of pandemic forbearance – the authority to temporarily diminish or halt monthly mortgage payments – until September 30, 2021.
The Consumer Financial Protection Bureau (CFPB) stipulates that, under the Cares Act, if you have received forbearance and continue to face financial difficulties due to the pandemic, you can request and potentially receive an extension. Importantly, forbearance should conclude with a repayment plan, eliminating the need for a lump sum repayment of all deferred payments.
Per CFPB’s guidelines, a loan servicer typically cannot initiate the foreclosure process before January 1, 2022.
Foreclosure Help Tulsa: Get Your Solution Today
Availing foreclosure help in Tulsa can be a game-changer in these challenging times. If your financial troubles persist due to the pandemic, remember that Tulsa foreclosure help is just a call away. Notably, Tulsa foreclosure help can guide you through the nuances of mortgage forbearance, ensuring that you have a repayment strategy in place before the forbearance period ends.
Action Plan When Confronted with Foreclosure
Facing foreclosure can be intimidating, but rest assured, there are several paths available to navigate this challenge. Initiating a conversation with your mortgage lender is an excellent first step toward formulating a strategy. Government bodies such as Making Home Affordable can also provide vital counsel and assistance.
Exploring Foreclosure Alternatives
1. Reinstatement – This option requires borrowers to settle their entire outstanding amount in a single payment.
2. Loan alteration and other loss mitigation strategies including…
- Forbearance agreement – This temporarily lowers or suspends payments.
- Repayment plan – Temporarily amplifies the monthly payment by incorporating a portion of the overdue amount to existing payments, facilitating borrowers to reconcile their loans.
- Loan alteration – Lessens monthly payments and updates the loan by appending any past-due sums to the debt’s balance.
- Deferral – Shifts any missed payment to the tail end of the loan while resuming the mortgage payment.
3. Prevention initiatives against government foreclosure such as…
- Federal National Mortgage Association (Fannie Mae)
- Federal Home Loan Mortgage Corporation (Freddie Mac)
4. Depart your home through a sale…
- Short sale – Homeowners divest their homes for a value lower than the total mortgage debt. This is currently infrequent due to escalating home values.
- Deed in lieu of foreclosure – The lender assumes ownership of the property deed instead of proceeding with foreclosure.
5. Sell your property and continue residing there…
Until recently, selling your home necessitated vacating the property. However, the novel sale-leaseback option allows homeowners to sell their property and continue living there as lessees. While this practice is relatively novel in the residential real estate domain, it’s a proven financial tool that does not accrue additional debt.
Effortless Transactions: Property Sale & Lease Agreement
With the sale-leaseback option, homeowners can receive the entire value of their homes in cash, substantiated by comparable market transactions and an independent valuation.
Immediately following the sale, we lease your home back to you at a reasonable market rate, mirroring comparable local rentals.
We shoulder the average homeowner’s maintenance cost, taxes, and insurance. Your sole responsibility is to pay the monthly rent and handle your utility bills.
You continue living in your home until you decide it’s time to move—whether that be in a year, two decades, or even just a few months.
Foreclosure Help Tulsa: Expert Guidance At Your Service
Navigating foreclosure can be complex and stressful, but foreclosure help in Tulsa is readily available. Tulsa foreclosure help offers expert guidance through these intricate processes, ensuring that you have the best possible outcome at your disposal. Remember, with foreclosure help Tulsa, you’re never alone in this journey.