MEETING homeowners can still get help with paying off their mortgage, even though the federal foreclosure ban has ended.
The ban originally expired on June 30, but then it was expanded until July 31st.
Foreclosure is when you default mortgage and the lender seeks to recover the amount owed by taking ownership of your home and selling it.
Seven million families have temporarily suspended mortgage payments during the pandemic due to temporary regulations.
Of these, two million homeowners have yet to resume payments at the end of June.
If you are still experiencing difficulties, we will explain below how to get help.
New rules from 31 August
To help homeowners who are still stranded, US Consumer Control Services in June announced new rules come into force on August 31.
Under the new rules, creditors will generally be barred from starting foreclosures before December 31 if they do not meet the stringent new criteria.
In most cases, lenders will only be able to foreclose a home if one of the following conditions applies to the homeowner:
- Gave up property;
- The delay on the mortgage before March 1, 2020 was more than 120 days;
- Delays mortgage payments for more than 120 days and does not respond to a request from a lender within 90 days; or
- All options except foreclosure have been evaluated and there are no options available to avoid foreclosure.
If you are having trouble and are worried about payments, be sure to contact your lender as soon as possible and ask for help.
Other support available
There are also many other references available, the specific type of which depends on your mortgage.
No matter what kind of mortgage you have, be sure to reach out to your lender and ask for support.
We have collected measures declared by the White House recently downstairs.
They align them with similar support for mortgage borrowers Fannie Mae and Freddie Mac.
Homeowners are eligible for a job if they are looking for a job, undergoing retraining, do not pay taxes and insurance, or are in difficulty for any other reason.
FHA insured mortgages
The Federal Housing Administration (FHA) requires lenders to offer eligible homeowners the option to renew payments at no cost.
The Department of Housing and Urban Development (HUD) is also empowering lenders to cut payments by 25% over the next few months.
This can include options with a 0% interest rate or extending the mortgage term to 360 months.
Borrowers with USDA-backed mortgages can cut their monthly payments by up to 20%.
Options include lower interest rates, extensions, and a mortgage loan advance, which can help cover late mortgage payments.
Borrowers will be assessed first for an interest rate cut, and if you need additional support, you can get a rate cut and renewal.
If that’s not enough to get a 20% discount, you can also get a mortgage repayment advance.
Some homeowners with mortgages backed by veterans’ deeds can also cut their payments by 20%.
In some cases, even large discounts are possible.
Lenders can also modify the loan and add up to 120 months to the maturity, meaning the total maturity can be up to 480 months.
Homeowners Assistance Fund
The Homeowners Assistance Fund, which was part of the American Bailout Plan, provides states with millions of dollars to help homeowners.
These funds can be used to pay off your mortgage, homeowner insurance, utility bills, and more.
Cash is also available in addition to the payment reduction options listed above.
To get it, you must have been in financial trouble after January 21, 2020.
You must also have income equal to or less than 150% of the regional median income or 100% of the US median income, whichever is greater.
The amount you can get depends on your individual circumstances, but eligible Connecticut families can get up to $ 20,000.
To apply, contact your mortgage lender who will guide you through the process.
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