In Ohio and all over the United States, people have been experiencing financial and personal challenges. This is due to a variety of unexpected circumstances that cost people their jobs, led to the accumulation of massive medical expenses and increased their overall debt. For those who owned real estate, the inability to pay a mortgage may have left them searching for options to avoid foreclosure. One strategy they might have used was a mortgage forbearance. Still, the duration for the forbearance is limited and it is important to know what to do when it is nearly over.
Available options when a mortgage forbearance is near its end
Many people used a mortgage forbearance to pause or reduce their mortgage payments. Since it is finite as to how long it lasts, those who are at or near its end date should know what they can do. First, the forbearance can be extended. Many homeowners got their forbearance based on the CARES Act. With that, a 180-day extension can be requested. This gives them nearly a year of forbearance. It is imperative to contact the lender before it expires or there may be financial penalties and a chance that the property will be foreclosed upon.
Refinancing could be beneficial to those who are able to do it. With the interest rates fluctuating, getting locked in at a lower rate could save money and help with getting into a better financial place while retaining the property. There are fees with a refinance, but it could still be a good step. Credit scores are scrutinized, so people should get their financial house in order as much as they can when considering this.
Homeowners can also ask for a loan modification. With the ongoing crisis, lenders have implemented programs to help distressed homeowners to get through this troublesome time without losing their home. In many instances, even lenders are reluctant to foreclose on a person’s home if their financial issues were largely out of their control. Modifying the loan could give breathing room to owners who are unsure of what to do as their forbearance is in its final days.
For real estate issues, having assistance can be crucial to achieving a positive outcome
People who are already having financial struggles might not want to add the cost of getting legal help to what they owe. That is often a mistake. Having professional guidance can help with being protected, assessing all possible solutions and finding the best option to avoid real estate litigation and the long-term personal and financial problems that accompany it. Consulting with those experienced in real estate can be wise from the start.