What Are My Options?

By
Real Estate Agent with KW Evolution - Topsfield, MA 92593-B

The COVID-19 virus has affected everyone, everywhere. Economies were good and in the U.S. more people were working, interest rates are low, and people are buying homes! THEN, JUST LIKE THAT, things came to a screeching halt. All of a sudden many people's jobs were declared unessential (what a slap in the face!). All of a sudden the unemployment rate skyrocketed to over 20%. People became concerned. How are we going to be able to pay for our home or rent?

Government programs were put in place to aid those who were concerned. BUT, we all know government programs usually have time limits. National unemployment has dropped to 7.8% and Real Estate is hot. BUT there are still many people out of work. Government aid programs are coming to an end and Congress is busy feuding with themselves. Meanwhile, here in Bizzaro World people are scrambling and looking for help.

In the following article, prepared by the folks at KCM, there is information about "Forbearance & Mortgage Relief" that many people may not be aware of.

 

Do You Need to Know More about Forbearance and Mortgage Relief Options?

Do You Need to Know More about Forbearance and Mortgage Relief Options?

Earlier this year when the nation pressed pause on the economy and unemployment rates jumped up significantly, many homeowners were immediately concerned about being able to pay their mortgages, and understandably so. To assist in this challenging time, two protection plans were put into place to help support those in need.

First, there was a pause placed on initiating foreclosures for government-backed loans. This plan started on March 18, 2020, and it extends at least through December 31, 2020. Second, homeowners were able to obtain forbearance for up to 180 days, followed by a potential extension for up to another 180 days. This way, there is a relief period in which homeowners have the opportunity to halt payments on their mortgages for up to one year.

Not Everyone Understands Their Options

The challenge, according to Matt Hulstein, Staff Attorney at non-profit Chicago Volunteer Legal Services, is, “A lot of homeowners aren’t aware of this option.”

There’s definitely traction behind this statement. In a recent survey by The National Housing Resource Center, housing counselors from across the country noted that many homeowners really don’t know that there is help available. The following graph indicates the reasons why people who are in this challenging situation are not choosing to enter forbearance:Do You Need to Know More about Forbearance and Mortgage Relief Options? | Keeping Current MattersThe Urban Institute explained:

 

“530,000 homeowners who became delinquent after the pandemic began did not take advantage of forbearance, despite being eligible to ask for the plan…These responses reflect a need to provide better information to all homeowners. (Lump-sum payment is not the only repayment option.)

Additionally, 205,000 homeowners who did not extend their forbearance after its term ended in June or July became delinquent on their loans. We need to examine who these people are and why are they not extending their option.”

Clearly, a more focused effort on education about forbearance and relief programs may make a big difference for many people, and a clear understanding of their options is mission-critical. Some communities, however, have been impacted by the economic challenges of the pandemic more so than others, further confirming the need to deliver education more widely. The Urban Institute also indicates:

“Black and Hispanic homeowners have been hit harder than white homeowners…nearly 21 percent of both Black and Hispanic homeowners missed or deferred the previous month’s mortgage payment, compared with 10 percent of white homeowners and about 13 percent of all homeowners with payments due.”

Options Available

It’s important to note that any homeowner experiencing financial hardship has the right to request forbearance. If you’re unfamiliar with the plans available, contact your mortgage provider (the company you send your mortgage payment to each month) to discuss your options. It is a necessary next step, as you may qualify for mortgage relief options or forbearance.

One option many homeowners may not realize they have is the ability to sell their house in this time of need. With the growing equity that homeowners have available today, making a move might be the best option to protect your financial future.

Bottom Line

If you need additional information on your options, you can review the Protect Your Investment guide from the National Association of Realtors (NAR) and the Homeowner’s Guide to Success from the Consumer Financial Protection Bureau (CFPB). For the majority of people, our home is the most important asset we have, and you should use all the help available right now to be able to preserve your investment.

Posted by

I pray that God our Father and the Lord Jesus Christ will be kind to you and bless you with peace

2 Thessalonians 1:2

 

Doug Dawes REALTOR®, AWREP, LMC

Broker Sales Associate

KELLER WILLIAMS REALTY - Topsfield/Newburyport

49 Main Street
Topsfield, MA 01983
 978-887-3995  ~ Office
 978-270-3037  ~ Cell
 DougDawes@KW.com

Comments (18)

Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Doug,  I hope 2020 year is over with soon and 2021 is better.  Plus I wish they would wait on the supreme court vote.

 

Oct 16, 2020 08:51 AM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Doug Dawes,

Your title says it all.  Unfortunately, whether it is pride or embarrassment or just lack of understanding, people don't ask the question. Those who do ask will find options that might work for them.

Oct 16, 2020 09:32 AM
Rocky Dickerson
Realty One Group - Las Vegas, NV
Superior Service!

Great post today Doug Dawes  It is quite the education we are getting this year. And quite the education we need to give to our clientele.

Oct 16, 2020 11:12 AM
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

Whilst many cannot afford to pay rent or mortgages, there are also those who have taken advantage of programs to protect the weakest in our communities. But those owners who are renting homes still have mortgages to pay as well, and many are struggling to survive right now. Options are a good thing and knowing what they are is always good to know.

Oct 16, 2020 11:39 AM
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Sad state of affairs we are in and the  politicians are not helping because of having their own agenda....Endre

Oct 16, 2020 11:18 PM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Morning Will Hamm 

You and me both! We just need to get through this election civilly then we can look maybe have some stability.  

Oct 17, 2020 06:58 AM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

You are so right Sheri Sperry - MCNE® and Good Morning.

Too many people are not aware of the help that is being offered. 

Oct 17, 2020 07:00 AM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

You hit the nail on the head when you said "quite the education we need to give to our clientele." Rocky Dickerson our profession does bear responsibility in disseminating information.

Oct 17, 2020 07:02 AM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Good Morning Nick Vandekar, 610-203-4543 

Yes, there are many who use available help to take a negative advantage which winds up hurting those in real need 

Oct 17, 2020 07:04 AM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Don't get me started on the politicians Endre Barath, Jr.  Their only agenda should be to serve We the People.

Oct 17, 2020 07:05 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Doug, luckily, had no calls from past clients stating they were in fear of losing their homes.  But, in Denver we have seen such huge home value increases, they would be good to list their home and accept the equity.

Oct 17, 2020 07:35 AM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

That is one strategy a seller could consider Joan Cox In MA the eviction protection lapsed

Oct 18, 2020 07:11 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Many families are facing very difficult times with their financial condition. Sadly, many will not receive good advice on their options.

Oct 19, 2020 08:03 AM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Roy Kelley and sadly many will not think of finding out what their options are

Oct 19, 2020 09:50 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Good Friday morning, Doug.

Take care, be safe and have a great day.

Oct 23, 2020 07:35 AM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Thank you Roy Kelley and wishing the same for you

Oct 23, 2020 08:22 AM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
New Hampshire Home Stager

I'm sure this information will be very helpful to many, Doug!

Oct 28, 2020 08:27 AM
Doug Dawes
KW Evolution - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Hi Sharon Tara 

I do hope it helps at least 1 person .

BTW, is that the latest model 2020 broom?...lol

Oct 28, 2020 08:30 AM
Sharon Tara

Of course!  Only the BEST model for me!

Oct 28, 2020 08:34 AM