Saturday, July 3, 2021

Mortgage relief coming to an end ... Now what?

Image courtesy of Stuart Miles at FreeDigitalPhotos.net
The mortgage forbearance period is coming to an end and homeowners are months behind on their mortgage payments. What happens next. The expectations are that homeowners will work out repayment plans with their lenders. Some will just extend their mortgages and add the missed payments to the back of the loan. Some will temporarily increase their payments for a period of time before it goes back to normal. Some people may be able to refinance completely and others may opt to sell in this market. I have had a couple clients go into and come out of forbearance periods successfully since this all started. But as we all know, nothing is perfect and some borrowers will find themselves unable to work out a plan with their mortgage companies. 

If working with your mortgage doesn't work, you may have another option; Chapter 13 Bankruptcy. Chapter 13 allows you to take up to 5 years to catch up on your mortgage. You will be required to start paying your regular mortgage payment and make another payment to a Trustee to pay your mortgage arrears. But, if you can do that, the mortgage company has no real say accepting the back payments over 5 years. If you find yourself out of options with the mortgage company and want to save your home, talk to a bankruptcy attorney. 

If you want assistance, legal representation, or just want to know more about Mark Medvesky or our firm of Wells, Hoffman, Holloway & Medvesky LLP, check out our website at www.whhmlaw.com.

#bankruptcy #Chapter7 #Chapter13 #MontgomeryCounty #lawfirm #BucksCounty #Pennsylvania

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 Mortgage servicers brace for fallout as Covid bailout comes to an end

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