2020 had a national economic pause on the economy. Unemployment went sky high, and some of the options for mortgage relief home owners did not know about the help that is available to them! Forbearance is an option that most lenders offer to homeowners that need mortgage relief and help with finances.
Government loans like VA and FHA backed loans were given a pause on foreclosures and that extends through December 31st 2020. Then homeowners were given the ability to obtain forbearance for up to 180 days. Forbearance option then could potentially be extended if needed. So potentially no mortgage payments for up to a year.
Why distressed homeowners did not forbearance there loans
Most common reason people in financial distress did not take the forbearance option was the fear of a lump sum re-payment when the forbearance period was over. Some financial experts say the the 2nd reason homeowners in financial trouble did not take the forbearance relief, is that they had no idea it was available.
According to the urban institute, over 500k people that became delinquent after the pandemic started did not take advantage of any mortgage relief options. Then another 200K Homeowners that were in forbearance did not extend, they just stopped paying and are now delinquent on the loans!
All of this says that a better effort on educating people that are in financial distress and missing mortgage payments needs to be addressed!
Options, According to the mortgage experts there is other options besides lump sum payments, you can possibly extend your forbearance if you need to! Contact your mortgage provider.
Here is a government site that may help:
One more option that homeowners have and don't realize it yet, they can sell the house in your time of need. With growing equity have available making a move may be a good option to protect your finances, not foreclose, not forbearance. We have seen people in forbearance sell the home and still walk a way with a few bucks.
or check your home value
Also please feel free to call anytime, We don't pressure you to sell. We can at least tell you if we know anyone that can professionally help you with your financial plan/goals with some kind of financial relief/program.