Mortgage Moratorium and Forbearance Periods: Are you at risk for Foreclosure?
With the coronavirus pandemic, many people have found themselves in a position where they are unable to make ends meet, resulting in a failure to pay their mortgages. Fortunately for many, the Government has provided temporary relief by implementing a foreclosure moratorium for federally guaranteed mortgages until June 30, 2021. In addition, they have provided respite for Borrowers of non-federally backed mortgages, by making it more accessible to qualify for mortgage forbearance periods. What exactly do mortgage moratorium and foreclosure periods entail? Essentially, lenders and/or servicers temporarily allow Borrowers to reduce or skip making principal and interest payments for up to a year or longer. For some, this is their last shot and only shot at saving their home. But, while these periods allow Borrowers extra time in their homes, the question then remains, what happens when the moratorium and forbearance periods end? Could you be at risk of losing your home to foreclosure?