Forbearance is a good option for homeowners that are facing financial difficulties, however when the forbearance is over, paused payments are due on the loan. The skipped payments are not forgiven
Post-Forbearance Options To Help You Avoid Foreclosure
Dated: August 31 2021
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Forbearance is a good option for homeowners that are facing financial difficulties, however when the forbearance is over, paused payments are due on the loan. The skipped payments are not forgiven by the lender and must be repaid. Many homeowners are unable to pay a lump sum upon exiting forbearance and are unaware of their options to avoid Foreclosure.
Thanks to a new CFPB rule effective August 31, 2021 through January 1, 2022, lenders must make a diligent effort to contact the borrower for 90 days before proceeding with a foreclosure. The lender must also make the borrower aware of all available options to avoid foreclosure. Thus keeping the lines of communication open with the lender is imperative.
Here are a few post - forbearance options for homeowners to avoid foreclosure that you may want to consider. Every situation is different. Consult with your lender to see what option is appropriate for you.
1. Loan modification - Modifying the terms of your current loan by adjusting the interest rate for example, resulting in possibly a lower payment. The lender may have conditions and require regular payments for a certain amount of time to qualify for the new terms.
2. Repayment Plan - Breaking down the total due and adding payments to the monthly mortgage installment over a set period during the life of the mortgage.
3. Refinance - If you are current on your mortgage, you may qualify for a new loan, with new terms, and a lower payment.
4. Loan Deferment- Adding payments to the back end of your loan - This will extend the length of your current mortgage loan.
5. Sell - Many homeowners are sitting on a small fortune in equity and may want to consider cashing out now. Inventory is low in the Greater Atlanta area market and many properties are still receiving multiple offers. Find out how much your home is worth now and schedule a free pre-listing consultation to get started.
The most important thing is to know all of your options and take action. Don’t bury your head in the sand and do nothing. For more Options for Home Owners in a Financial Crisis get your FREE Guide to Avoiding Foreclosure today.
Cherise Gunnerson
Cherise is a Georgia Associate Broker / Realtor with eXp Realty, LLC. She obtained her Sales license in 2006 and Broker license in 2020. She lives in Dekalb County and is a neighborhood expert in the ....
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