For many people who had difficulties making mortgage payments due to the pandemic, forbearance options were available. However, what happens to your home when forbearance ends and you still need help?

My Mortgage Forbearance Ended, Now What?

For most loans, your mortgage servicer will offer payment plans to cover the missed payments. However, some servicers may require the skipped payments to be paid in a lump sum, which is not doable to most people. It is important that you ask how and when you need to repay your payments once your forbearance ends. Here are possible options that may be offered you:
  • Adding skipped payments to your current payment
  • Deferring the skipped payments to the end of your loan. This makes your skipped payment lump sum due at the time of refinancing or if you change ownership.
  • Modifying your loan
  • Completing a Deed in Lieu of Foreclosure (DIL)

I’m Worried About How I Can Keep My Home

If you need to start repaying the skipped payments during your mortgage forbearance, you may want to consider other options. A Chapter 13 Bankruptcy will help you keep your home and provide you with the security of an automatic stay. The automatic stay will prevent a foreclosure and gives you time for restructuring debts. In Chapter 13, you are given a three to five-year period to resolve your delinquent accounts. During this time, you will be able to pay arrearages on your mortgage loan and/or complete a loan modification.

Need More Information?

At the Law Office of Daniela Romero, we believe in relationships that are based on trust. Before we work together, we would like to get to know you and we would like you to get to know us. We want you to be sure you are the right fit for us and that we are the perfect fit for you. This will allow you to be completely comfortable sharing intimate and difficult details of your case, so we can offer you representation to the fullest extent of the law. Call us today to set up a free consultation.