As FHFA Extends Foreclosure Moratorium for the Last Time, Here’s What Difficult Homeowners Can Do

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The FHFA has extended its foreclosure and eviction period by another month until July 31, 2021. (iStock)

Federal Housing Finance Agency (FHFA) on Wednesday again expanded its block for last time foreclosure and lease eviction if your mortgage is secured by Fannie Mae and Freddie Mac. It also blocks evictions from real estate property (REO).

The moratorium on preventing foreclosures during the pandemic expires on June 30, 2021, but the FHFA announcement extends the foreclosure termination by another month until July 31, 2021.

“This action is just the latest step taken by FHFA in favor of homeowners and the mortgage market during the pandemic,” the agency said in a statement. “FHFA continues to monitor the impact of the COVID-19 service policy on borrowers, businesses and their counterparties, and the mortgage market.”

If you are financially hit by the pandemic and are struggling to cope with your mortgage payments, you might consider refinancing your mortgage to reduce your monthly payments. Visit Credible to compare several mortgage companies at once and find the one that suits your needs.

FHFA’S NEW MORTGAGE REFINANCING OPTION MAY REDUCE HUNDREDS OF PAYMENTS FOR SOME HOUSEHOLDS

What to do if you are unable to make your mortgage payment

If you’re struggling to make your mortgage payments, there are several options available to you. The Biden expansion will keep homeowners from foreclosure until July 31, 2021, but there are other options to consider.

Refinancing: At record low mortgage rates, refinancing your mortgage can lower your interest rate and save money on monthly payments as well as the amount of interest paid over the life of the loan. FHFA even has low income refinancing options for those whose income or credit profile is lower than that of the typical homeowner, which can save them anywhere from $ 100 to $ 250 per month.

Refinancing is a great option if you:

  • It would be easier to make your mortgage payment if it was lower
  • Plan to stay home for a few more years.
  • Interested in obtaining cash from your home equity

Visit Credible to contact the lender to see loan options and find out your personal interest rate.

DATA SHOWS INDICATORS DATA THAT US RESIDENTS EXIT FROM MORTGAGES

Patience: The the deadline for applying for a mortgage waiver, such as waiver of a mortgage, fast approaching. For homeowners who are unable to make a mortgage payment due to difficulties caused by COVID-19, the deadline is June 30, 2021. This allows homeowners skip monthly payment for up to 18 months.

The federal foreclosure memorandum will keep you from losing your home for now, but preventing foreclosures next month is not a permanent financial solution. Consider options such as refinancing your mortgage to keep your monthly payment down forever. You can visit Credible to find a new rate without affecting your credit score.

When mortgage refinancing is not possible

While refinancing can be a great option for financial success with today’s low interest rates, it is not an option for every home buyer. While there are government-backed programs that help people with low credit ratings or low incomes get mortgage refinancing, there are factors that can prevent you from being eligible for a loan.

You have missed payments: If you are currently missing payments, it is too late to apply for mortgage refinancing. The FHFA option allows homeowners to skip no more than one payment in the last 12 months and not skip payments in the last six months. While payments missed during COVID abstinence do not count, homeowners should be patient and make payments again. Other refinancing options are usually more stringent.

You have no job: If the homeowner cannot make payments due to unemployment, he will not be able to get mortgage refinancing. To reduce the risk of home foreclosures, a federal rule called Payout Rule means that mortgage lenders must ensure that borrowers have the funds to pay off their loan before mortgage companies can provide it.

You are currently in indulgence: If you have taken advantage of the mortgage benefits offered by the federal government, such as the withholding mortgage option, and are currently on hold, you cannot apply for refinancing until you become active again. Fannie Mae made some recommendations about what homeowners can do to become current, including paying back their missed payments, renegotiating their loan terms, deferring payments, and more.

Final thoughts

The Biden administration extended its foreclosure block for another month, preventing lenders from starting foreclosure processes and suspending REO property rent evictions, making it easier for those trying to make their payments due to COVID-19.

But homeowners may also consider options such as refinancing their mortgage to facilitate long-term relief on their mortgage payments. Contact Credible talk to your mortgage lender about foreclosure avoidance and get your questions answered.

THIS IS WHY YOU SHOULD (OR SHOULD NOT) REFUND YOUR MORTGAGE

Have a financial question but don’t know who to contact? Write to the Safe Money Specialist at moneyexpert@credible.com and your question can be answered by Credible in our Money Expert column.

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