Struggling to Pay Your Mortgage? Here's How to get help
Published May 26, 2020
The coronavirus pandemic that has swept the world has left a wake of physical and financial destruction in its path, and the worst of it may still be in our future. With stay-at-home orders and social distancing guidelines in effect to help prevent further spread of the deadly COVID-19 virus and protect the foundation of our health and well-being, many Americans have lost their jobs and are finding it difficult to make their mortgage payments and other bills.
While the effects of the world health crisis have devastated individuals, families, and businesses, the good news is that as a planet and a country, we are all in it together, and there are options for those struggling to make mortgage payments.
CARES Act Passed to Help Struggling Homeowners
With businesses shuttered and Americans sheltering in place, the economic fallout of the coronavirus pandemic has affected homeowners' ability to make mortgage payments, and many of them are looking for ways to get through the crisis without losing their homes. Millions of American homeowners are taking advantage of the federal government's mortgage forbearance program under the CARES Act.
While the program does not forgive home loans, the relief package prevents lenders from foreclosing on your property and allows for 180 days of forbearance, allowing a stall or reduction in payments. An additional 180 days may be requested if needed without incurring additional penalties, fees, or interest beyond the scheduled amounts.
Help After Forbearance Options Expire
The duration and extent of the damage caused by the measures instituted to control the virus is yet to be determined, though it is expected to be a long, hard road back that some businesses will not survive. If the forbearance allowances have expired, homeowners have options depending on the status of the loan and the overall health of the business.
Lenders are required to notify borrowers with a 30-notice before the plan is to expire, giving homeowners three options:
- Remit all missed payments in one payment
- Add the forbearance amount to the end of the mortgage as additional payments or as one lump sum
- Set up a repayment plan spread out throughout the rest of the scheduled payments
While lenders certainly want and expect to be paid in full for the remainder of the loan amount, most are understanding of the difficult situations these unprecedented times have put so many people in and will work to find a compromising solution that will work for all parties involved.
Why Choose Big Life Home Loan Group
The most important lesson to be learned from the fallout from this crisis is that you are not alone. The industry professionals at Big Life Home Loan Group have years of experience and an industry reputation as a caring, knowledgeable resource for the home buying process.
Contact Big Life Home Loan Group Today
Contact a knowledgeable representative at Big Life Home Loan Group for complete information on the wide range of home lending services provided by highly trained and knowledgeable real estate lending professionals.