Concerned about foreclosure moratorium? While many after a long 2020 will be ringing in 2021 with New Year celebrations, those with their homes going into forbearance due to loss of employment, illness, or just the whole state being shut down caused by the pandemic will see their Fannie Mae or Freddie Mac program end. Without a specific solution to a person’s financial woes, an immediate response to alleviate yourself of the impending loss of your home on your terms could be your wisest solution. Educating yourself on your options can help you focus your efforts towards recovering from the property and avoiding the long-reaching consequences of a bank foreclosure. By working with a professional buyer who is knowledgeable in forbearance recovery compared to personal foreclosure, you may have some options. Find a person or company you can rely on, trust. One that you will have a guaranteed closing date that works around your schedule and timing. Partnering with the professional home buyer will ensure that you will not have to worry about dealing with inexperienced cash buyers, who are often backing out of deals at the last minute after their home inspection. Or cannot qualify for financing after holding up your sale for months. Without doing what it takes to ward off the proceedings, here is what the end of the foreclosure moratorium may mean for homeowners in Minneapolis St Paul.
Dealing With Foreclosure in Minneapolis St Paul
This is not the time to stick your head in the sand; the clock is ticking on your moratorium! Homeowners will begin to receive notifications from their lenders stating how much money they own and what the expectations will be for the lender to get their back mortgage amounts. Usually, a period is allowed for the homeowner to bring the mortgage payments current with the lender. The Joint Economic Committee of Congress determined the average foreclosure has a cost of nearly $80,000 in total, including the lender’s loss and around $7,200 to the homeowner. Think about it from the lender’s side. They could be losing up to $72,800 in the average foreclosure. Can you see why they will do whatever it takes to get you to pay back what is owed or take the property over quickly if you can not pay. Depending on the circumstances, you may need a licensed attorney. Fees charged by local Minneapolis St Paul lawyers for legal assistance in foreclosure moratorium proceedings vary. Many attorneys offer a flat fee arrangement, ranging from $1,500 up to $4,000 depending on how complicated your case is. There may also be additional charges for itemized expenses such as court costs, postage, or even travel. The end of the foreclosure moratorium may mean further indebtedness and hardship for already strained homeowners in Minneapolis St Paul.
Financial Loss Because of Foreclosure Moratorium
At the end of the foreclosure moratorium, know that all the missed payments on the home mortgage will have been added to the loan amount you have. However, there will be no further acceptable delay on the monthly payments that follow. The lender will be able to come after you, and the forbearance no longer protects you. Our home is usually the largest investment we make, and over time our equity is built. That equity in your home is just like a savings account where the average mortgage payment you make adds a little to that equity account. Without the intervention of life-changing circumstances, such as returning to work or new employment, the foreclosure moratorium’s end may mean loss of the equity in the property for homeowners in Minneapolis St Paul. If you are forced to sell your home by the bank, and you owe more on the house, you could sell it for, you often still owe any difference. Meaning the amount the property sold for against your remaining debt on the mortgage to your lender, known as a deficiency, after the foreclosure. A foreclosure will remain on your credit report for 7 years. Higher interest rates will add to your costs of living on any credit you qualify for due to the foreclosure on your record. In some cases, your chances at a job may be jeopardized by your credit history as well. I know it sounds harsh, but it is a reality you must consider.
The end of the Minnesota foreclosure moratorium may mean eviction for some homeowners in Minneapolis St Paul. As the process moves forward into 2021 and beyond, leading to the final step in the foreclosure process, the new owner, which is the lender often, takes possession most of the time. An eviction process will be carried out, eventually leading to the homeowners receiving notice of when the possession will occur, and the property – your house must be vacated. This period of time can vary from three to 30 days. Then you will be faced head on with the expenses of moving. You will most likely be moving into a rental, and you will need funds for deposits, utilities, and everything involved in starting over in a new residence. Do not delay. If there is no resolution to your financial situation shortly, you may want to consider selling your house now. Likewise, you may pay more for rent or may even experience not being accepted as a tenant because of the foreclosure. Experiencing the loss of your home in foreclosure and the eventual eviction that follows is emotionally draining, adds much stress to a difficult stage of life in addition to the negative financial aspect. If you don’t plan your life, and just stick your head in the sand others will do it for you, so the time to act is now!
The end of the foreclosure moratorium may mean enduring painful financial loss, watching your credit be destroyed that you might have worked so hard to get into the right spot. Instead of security that you once had, you are paying for an unsought relocation and additional debt for homeowners in Minneapolis St Paul. There is no guaranteed closing date or even if the home will sell through either a traditional listing with a real estate agent or selling on your own. When you consider both the immediate and long term personal and financial costs, it may be worth selling now at a lower than the traditional retail market amount, guaranteeing your closing date, getting out of that mortgage, and protecting your future. On January 1, 2021, your monthly mortgage payments will be due again, and banks will start foreclosing – sell now to Minnesota Cash Home Buyers and avoid the loss of your home and all of the hidden costs of foreclosures. We’re happy to answer any questions or concerns you may have. To learn more about us, what we can offer, and what the foreclosure moratorium may mean for you, send us a message or give us a call today at (612) 444-5088.