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Foreclosure and Loan Modification Blog

COVID-19 Mortgage Forbearance Problems

The government has made it very easy for homeowners to get a forbearance on their mortgage during the pandemic. This has been a life line for many homeowners who have been affected financially by COVID-19. In this time of crisis, all a borrower has to do is pick up the phone and call their mortgage servicer and ask for payment relief. But how are homeowners going to pay the forbearance back? Are homeowners really being protected from delinquent marks and credit consequences?

COVID-19 Foreclosure Statistics

COVID-19 has put the world through the ringer lately, and homeowners have not been an exception.
Though the government has tried to help out, only so much can be done when unemployment is increasing and businesses are closing.

Over 40 million people have filed for unemployment. Even before the pandemic about 10-15% of homeowners reported to being “housing insecure”, meaning that homeowners were worried about their ability to make payments. In April 2020, 1 in 3 Americans did not pay rent, and even though evictions have been halted, there are still people being evicted!

What Happens When My COVID19 Mortgage Forbearance is Over?

If you have secured a COVID-19 mortgage forbearance that works for you and your family this can be a great help. However, it is important to discuss with your mortgage servicer how they will be handling your past due payments at the end of the forbearance. 30 days before the forbearance ends you should assess your situation with your mortgage servicer to determine your next steps. Some servicers are requiring borrowers to make one large balloon payment when the forbearance ends, which is the worst case scenario for many homeowners. Other options are:

  • reinstatement
  • repayment plan
  • payment deferral
  • loan modification
  • refinancing

10 Years After The Financial Crisis, Don't Forget Foreclosure Victims

September 2018 marks the 10 year anniversary of the bankruptcy of Lehman Brothers, the event that signifies the start of the financial crisis in many people's minds. You remember the financial crisis, the worst since the Great Depression, the one that almost destroyed the economy? That one.

Everyone has an opinion about the crisis and how they would have responded to it if they had been in charge. You'll hear people say that they wouldn't have bailed out the banks and the government should have done this or that, and it would have been better that way, and blah, blah, blah.

About this Blog

Amerihope Alliance Legal Services is a leading loan modification and foreclosure defense law firm with attorneys licensed in 5 states. We have helped over 7,000 homeowners fight back and keep their homes.

Click to Read Our Super Loan Mod Success Stories

Our goal is to provide valuable information to help homeowners who are trying to obtain a loan modification or to stop foreclosure. You may schedule a free consultation at any time.

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