The COVID-19 outbreak brought a financial crisis to many Americans who lost their jobs and are struggling to pay bills and mortgages. To reduce the financial burden that had fallen on millions of US citizens, the federal government is prescribing moratoriums to prevent, postpone, and delay evictions. All prescribed measures are due to prevent the 2008 scenario from taking place 12 years later amidst the COVID-19 outbreak. In the meantime, mortgage servicers are offering help to borrowers who are affected by the outbreak.
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Immunity Against Evictions and Foreclosures During the Crisis
The government is urging mortgage servicers and local governments to take action in the sense of preventing foreclosures across the US. As Gavin Newsom, the Governor of California, stated on this occasion, that the entire US will need to make sacrifices while emphasizing that these sacrifices shouldn’t include losing a home.
Lenders Offering Hardship Forbearance Options
Fortunately, as the federal government is urging local governments to help with moratoriums on foreclosure activities in California and wider, mortgage servicers and lenders are offering options that are favorable for many lenders in such a situation. Lenders are offering hardship forbearance options to lenders, which should help borrowers keep their homes and cover their mortgages. Also, states and cities in the US are taking steps to halt all foreclosures and eviction activities.
What to Do if You Can’t Pay Your Mortgage?
Mortgage servicers are likely to cooperate with existing customers over starting foreclosure processes. In case borrowers are struggling with paying their mortgages, the first step would be contacting mortgage servicers. Numerous banks and mortgage lenders are offering hardship options that should help the borrowers during the time of crisis without the consequences of losing their homes. Borrowers also need to file for unemployment and prove that they have been affected by the COVID-19 crisis. Mortgage forbearance means that the lender will postpone your payments or reduce the monthly payments to become more affordable. Either way, foreclosure can be prevented and stopped, while the mortgage payments need to be covered.
