President Joe Biden directed federal housing regulators to extend mortgage forbearance programs for an additional six months and prolong foreclosure relief programs.
Forbearance is when a homeowner’s mortgage servicer or lender permits them to freeze their mortgage payments for a certain amount of time due to a financial situation.
Millions of Americans face continued hardship from the COVID-19 pandemic. Today, 1 in 5 renters are behind on rent and just over 10 million homeowners are behind on mortgage payments.
For the 2.7 million homeowners who were already facing financial struggles at the beginning of the pandemic last year and the 2.1 million currently facing mortgage delinquencies, forbearance is a temporary sigh of relief.
Such is the case for Mr. Roldan in Falls Church, Virginia who has now requested a six-month extension on his mortgage forbearance: “It’s calm for now and I’m thankful, but I’m still afraid of what’s to come when these programs come to an end, if nothing has changed — I will lose my home.”
A backlog of foreclosures
Compared to previous years of similar financial difficulties, there is a notable decrease in foreclosures.
However, once forbearance comes to an end, some homeowner’s financial situation may not be resolved. These individuals will still need to continue paying their monthly mortgage payments, otherwise, they will face foreclosure.
One in every 14,164 housing units had a foreclosure filing in January 2021, and it is estimated that 1.8 million mortgages will be seriously delinquent when foreclosure moratoriums on government-backed loans begin to lift.
The startling fact is that while there is a backlog of foreclosures building up due to this moratorium, but no one will know how big that backlog is until after the government programs expire.
The Biden administration is proposing that the American Rescue Plan should deliver more aid to struggling homeowners. The rescue plan creates a Homeowners Assistance Fund which will provide states with $10 billion to help struggling homeowners catch up on their mortgage payments and utility costs.
United Homes 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 not-for-profit organization that is committed to helping 10,000 homeowners avoid foreclosure. Due to the unprecedented circumstances that have caused an abundance of homeowners to seek services during the covid-19 pandemic, UHA’s services are now offered 100% without charge.
“I have three kids that depend on me, I’ve faced foreclosure in past, and I know the pressure of not knowing where to turn; UHA’s sole purpose is to help the community to find alternatives and real solutions to foreclosure”
Tony Rivas is the founder and president of UHA. As a homeowner who found himself in the middle of the housing crisis in 2008, it’s all still fresh in his mind: empty promises that eventually led him to give up his family’s home.
Taking the valuable insight learned from his experience he opened UHA. Through strategizing and exercising every available option, foreclosure avoidance and homeownership preservation is possible across the nation.
With personal consultation services valuing around $1k a consultation, UHA is dedicated to providing financial assistance, honest resources, and personalized solutions for homeowners all free of cost.
“At UHA we want to share lessons learned from our own experience; there is a way out.”
