Foreclosure During COVID-19: Get Legal Assistance Today
COVID-19 has posed many different obstacles for us in 2020. If you are facing foreclosure on your home, there may be options for you to save your home. Use this list from Money Central News to save your home:
Asking the lender to reinstate your loan should always be one of your first steps. It involves calling the lender, finding out how much you still owe and explaining why you're behind, then negotiating on an amount you can pay to have the loan reinstated.
2. Forbearance Agreement
Asking the lender to forgive your debt is another option. It is possible the amount left owing is low enough to be forgiven, or the total amount to be reduced. Most lenders would prefer to receive some money than none at all so keeping you a paying debt is better for all parties involved.
This option gives you, the lender, a new loan. This option works best if you have equity in your home and are in a good credit standing.
4. Sell your home
Not the ideal option if you are trying to save your home, but sometimes cutting your losses can be the safest route for your financial future.
5. Loan Modification
This is a re-construction of your current loan with the goal to lower your regular mortgage payments. Either by lowering your interest rate for a specific mandated time or extending the time of the loan.
Finally, keep in mind that due to COVID-19 relief measures, you may qualify for a home foreclosure forbearance depending on your particular loan (if it is federally backed) and the location of your home. This however provides only temporary assistance, and it is likely you might need to utilize on of the above options as well.
See LegalEASE’s network provider list here if you need legal help through a home foreclosure.
Foreclosure assistance is an included LegalEASE plan benefit – check with your HR representative today to see if you are covered.