Why forbearance is a temporary fix for America’s foreclosure backlog
WASHINGTON, March 16, 2021 / PRNewswire / – United Homes of America
THE AMERICAN TREND TODAY
President Joe biden led federal housing regulators extend mortgage forbearance programs for an additional six months; and extend foreclosure relief programs.
Forbearance is when a homeowner’s mortgage agent or lender allows them to freeze their mortgage payments for a period of time due to a financial situation.
Millions of Americans face persistent hardships because of the COVID-19 pandemic. Today, 1 in 5 tenants are behind on rent and just over 10 million homeowners are behind on mortgage payments.
For the 2.7 million homeowners who already faced financial hardship at the start of the pandemic last year and the 2.1 million currently facing mortgage defaults, forbearance is a temporary sigh of relief.
This is the case of M. Roldan in Falls Church, Virginia who has now requested a six-month extension of his mortgage forbearance: “It’s calm for now and I’m grateful, but I’m still afraid of what will happen when these programs end, if nothing has changed – I’m going to lose my house.”
A CLOSING REAR
Compared to previous years of similar financial difficulties, there is a notable decrease in foreclosures.
However, once the forbearance ends, the financial situation of some homeowners may not be resolved. These people will still have to continue paying their monthly mortgage payments or they will face foreclosure.
One out of 14,164 homes has been the subject of a foreclosure request January 2021, and it is estimated that 1.8 million mortgages will be seriously in arrears when the moratoria on foreclosures on government guaranteed loans begin to lift.
The surprising fact is that although there is a backlog of foreclosures due to this moratorium, but no one will know how big this backlog is until the expiration of government programs.
The Biden administration is proposing that the US bailout provide more help to struggling homeowners. The rescue plan creates a Homeowners Assistance Fund that will provide states with 10 billion dollars to help struggling homeowners catch up on mortgage payments and utility costs.
UNITED HOUSES OF AMERICA
Those facing potential foreclosures are not alone and without resources. A fantastic example of a foreclosure aid organization is United Homes of America (UHA). UHA is a non-profit organization committed to helping 10,000 homeowners avoid foreclosure. Due to the unprecedented circumstances that caused an abundance of homeowners to seek services during the covid-19 pandemic, UHA’s services are now offered 100% free of charge.
“I have three children who depend on me, I have been through a lockdown before and I know the pressure of not knowing where to turn. The sole purpose of the UHA is to help the community find alternatives and real solutions to foreclosure “
Tony rivas is the founder and president of the UHA. As a landlord who found himself in the midst of the housing crisis in 2008, everything is still fresh in his head: empty promises that ultimately led him to abandon his family’s home.
Taking advantage of the valuable lessons learned from his experience, he opened UHA. Through strategizing and exercising all available options, foreclosure avoidance and property preservation are possible across the country.
With personal consultation services valuing approximately $ 1,000 A consultation, UHA is dedicated to providing financial assistance, honest resources, and personalized solutions to homeowners, all for free.
“At UHA we want to share lessons from our own experience, there is a way out.
Contact: Abigail Ponce, [email protected]
SOURCE United Houses of America