July 30, 2021

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Mortgage News

As FHFA extends foreclosure moratorium for final time, here’s what struggling homeowners can do

The FHFA extended their foreclosure and eviction ban for another month until July 31, 2021. (iStock)

The Federal Housing Finance Agency (FHFA) again on Wednesday expanded his block For a the last time on foreclosures and evictions when your mortgage is covered by Fannie Mae and Freddie Mac. It also blocks real estate evictions (REO).

The moratorium on preventing home foreclosures during the pandemic was due to expire on June 30, 2021, but the FHFA’s announcement extends the foreclosure freeze for another month to July 31, 2021.

“This move is just the latest step FHFA has taken to help homeowners and the mortgage market during the pandemic,” the agency said in a statement. “FHFA continues to monitor the impact of the COVID-19 service policy on borrowers, businesses and their counterparties, and the mortgage market.”

If you are financially affected by the pandemic and are struggling to keep up with your mortgage payments, you can consider mortgage refinancing to reduce your monthly payments. Visit credible to compare multiple mortgage lenders at once and find one that suits your needs.

FHFA’S NEW MORTGAGE REFINANCING OPTION COULD CUT PAYMENTS BY HUNDREDS FOR SOME OWNERS

What to do if you are having trouble making mortgage payments

If you are having trouble making your mortgage payments, there are several options available to you. Biden’s extension will keep homeowners out of foreclosure until July 31, 2021, but there are other options that should be considered as well.

Refinancing: With mortgage rates record low, refinancing your mortgage could lower your interest rate and save you money on your monthly payment as well as the amount of interest paid over the life of the loan. The FHFA even has low-income refinancing Options for those with income or credit profiles that are below the typical homeowner, which can save them $ 100-250 per month.

Refinancing is a great option if you:

  • It would be easier to make your mortgage payment if it were lower
  • Plan to stay in the house for a few more years
  • Are interested in withdrawing cash from the equity in your home

Visit credible to get in touch with a lender to see your loan options and find your personal interest rate.

US HOME OWNERS INCREASE LOSING MORTGAGE, DISPLAYING DATA

indulgence: The Deadline for applying for mortgage relief, e.g., approaching quickly. For homeowners unable to make their mortgage payment due to hardship caused by COVID-19, the deadline is June 30, 2021. This allows homeowners to skip their monthly payment for up to 18 months.

The federal government’s foreclosure memorandum will keep you from losing your home for the time being, but avoiding a foreclosure sale for the next month isn’t a permanent financial solution. Consider options like mortgage refinancing to permanently lower your monthly payment. You can Visit Credible to find your new plan without affecting your creditworthiness.

When mortgage refinancing isn’t an option

While refinancing can be a great option to equip you for financial success with interest rates currently low, it is not an option for every homebuyer. While there are government-sponsored programs to help people with low credit scores or lower incomes get mortgage refinancing, there are factors that could prevent you from qualifying.

You are missing payments: If you are currently missing out on payments, it will be too late to apply for a mortgage refinance. The FHFA option allows homeowners not to have defaulted more than one payment in the past 12 months and no payments in the past six months. While payments missed during COVID Forbearance don’t count, homeowners must lose the forbearance and make payments again. Other refinancing options are usually stricter.

You don’t have a job: If unemployment is the cause of a homeowner’s insolvency, they will not be able to get mortgage refinancing. To reduce the risk of foreclosures, a federal rule was made called The eligibility rule This means that mortgage lenders must ensure that borrowers have the funds to repay their loan before mortgage companies can grant it to them.

You are currently in forbearance: If you have taken advantage of federal mortgage facilities, e. For example, if you have a mortgage forbearance option and you are currently in the forbearance, you cannot complete a refinancing until you are up to date. Fannie Mae gave some guidelines on what homeowners can do to stay updated, including repaying their defaulted payments, changing loan terms, deferring payments, and more.

Final thoughts

The Biden administration extended their foreclosures hold for another month, prevented lenders from initiating foreclosure proceedings, and paused rental evictions on REO properties to relieve those struggling to make their payments due to COVID-19.

However, homeowners may also consider options like refinancing their mortgage to take the pressure off their mortgage payments over the long term. Contact credibly to speak to a mortgage lender about avoiding foreclosure and answer your questions.

YOU SHOULD (OR SHOULD) REFINANCE YOUR MORTGAGE HERE

Do you have a finance-related question but don’t know who to contact? Email the credible money expert at [email protected] and your question could be answered by Credible in our Money Expert section.