Protect Your Home From Foreclosure| Know Your Forbearance Options

Real Estate Agent with Mayra Espinosa Broker- Realtor | Call 650-996-8961 CA DRE# 01468791

Protect Your Home From Foreclosure - Know what options are available to you so that you can choose the best forbearance solutions for your situation.

What are the forbearance alternatives for homeowners after September 30, 2021? Homeowners, if after September 30, 2021, you are still experiencing financial hardship, here are some alternatives that may be available for you:


Mortgage Relief: These programs are intended to help address missed payments during forbearance and potentially make your monthly mortgage payment more affordable. 


These may include:

  • Payment deferral - Deferring your missed mortgage payments, so your mortgage payments you owe are not due until your loan is paid off your loan, refinance, or when you sell your home.


  • Loan modification, which would permanently change the terms of your loan. A loan modification is an agreement between you and your mortgage service to modify the terms of your loan to accommodate the missed payments during forbearance and adjust the new payment amount to make it affordable. A loan modification might be suitable for homeowners who can no longer afford their regular mortgage payment due to permanent changes in their financial situation, such as long-term job loss or illness.


  • State Mortgage Assistance: You may be eligible for mortgage payment assistance from your state. Many states offer programs designed to help homeowners struggling with COVID-19 hardships to bring their past-due mortgage payments current and resume making their monthly payments. 


Check out your mortgage servicer website for relief-and-assistance contact information for each participating state. 




If none of the alternatives mentioned above work for you, then you may have to consider:

  • Sell your home: With the high demand for housing, low inventory, and multiple offers. On average, sellers in some markets are received up to 110% of their asking price. Therefore, most homeowners across the country have equity right now, which means the property is worth more than what they owed. If that may be the case for you selling your home and using some of its proceeds to buy another home will allow a fresh start with a more affordable house.


  • Short Sale: Even if you don't have equity in your home, you may qualify for a short sale, which is where you sell your property for fair market value that may be less than the total mortgage balance you owe on your mortgage. Any remaining balance you owe on the mortgage won't have to reimburse in most cases, which gives you the opportunity of a fresh start.  Also you may  be eligible to receive cash to assist you with moving expenses. If you want to move forward with the sale of your property, you or your real estate agent can contact your lender(s) to let them know after listing your property for sale and receiving an offer to purchase your property.


If you want your real estate agent to contact your lender, then an authorization letter signed by all parties whose names appear on the loan is require to be able to obtain consent to talk to your lenders on your behalf. You and your realtor (Real estate agent) will work with the mortgage lender throughout the process to ensure its success.


If you still require forbearance assistance after 09/30/2021, please call your mortgage servicer to discuss this option, as it is necessary to get approval from the owner or insurer of your loan.


To Talk to a HUD Housing Counseling



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Mayra Espinosa Broker - Realtor

Mayra Espinosa-Realtor Broker Associate, Probate Certified, proudly Serving buyers and seller in Pacifica, San Bruno, Daly City, South San Francisco, Millbrae, San Mateo, Burlingame and all the San Francisco Peninsula communities


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IMPORTANT NOTICE Realty One Group Alliance, Mayra Espinosa is/are not associated with the government, and it services have not been approved by the government or the consumer’s lender. Your lender or mortgage servicer may not agree to change your loan and/or agree to a Short Sale. If you stop paying your mortgage, you could lose your home and damage your credit rating. You can stop doing business with Realty One Group at any time. You can accept or reject any offer Realty One Group obtains from your lender. If you reject the offer, you do not have to pay the company’s real estate commission as outlined in the listing agreement. There is no guarantee you will get the results you seek from a short sale. Realty One Group does not provide Legal or Financial Advice. Please seek legal counsel. Should you hire Realty One Group you may still communicate with your own lender. Realty One Group will not charge upfront fees under any circumstances to the homeowner.

Comments (2)

John Juarez
The Medford Real Estate Team - Fremont, CA

Great advice, Mayra.

During the recession of 2008-2012, I encountered many homeowners whose allowed their mortgages to become delinquent due to job loss, family emergency and other serious issues. Since real estate value had declined drastically in may area, there were lots of foreclosures and short sales. At the same time, many buyers were afraid to take advantage of fabulous buying opportunities because there feared that values were going to go down even more.

Now, we are seeing a different kind of distressed homeowner. The hope is that the rapid increase in real estate values in our market will provide them with a cushion to avoid foreclosure.

Sep 26, 2021 02:37 PM
Mayra Espinosa Realtor San Mateo Pacifica Homes
Mayra Espinosa Broker- Realtor | Call 650-996-8961 - Pacifica, CA
San Mateo County Real Estate | Buy | Sell | Invest

Hi John,

Thank you for stopping by!

The Post-Pandemic homeowners are protected, but those in preforeclosure before the pandemic are not protected from foreclosure, but there are other options available.

Sep 28, 2021 03:05 PM