Sep 21

1M Delinquent Homeowners Haven’t Asked for Forbearance

1M Delinquent Homeowners Haven’t Asked for Forbearance

Homeowners who have failed to take advantage of pandemic-related mortgage assistance may be at risk of losing their properties. A little more than a million owners nationwide are at least 30 days past due on their monthly payments and haven’t entered a forbearance program or engaged their lender about some other financial solution, according to an analysis from Black Knight, a mortgage data firm.

About 680,000 of those homeowners have federally guaranteed mortgages and are eligible for a forbearance program to put their monthly payments on hold for up to a year without facing a penalty. (They would have to pay back the funds at a later date.) Many lenders also are offering such help to borrowers who don’t have a federally guaranteed mortgage. But borrowers must initiate outreach for the help, for which they aren’t required to prove hardship under federal rules.

Homeowners may not be reaching out to lenders because they’re confused, surveys show. More than half of borrowers surveyed by the National Housing Resource Center in July say they were not aware of the forbearance program or didn’t know how it works. Of consumers confused about their options, nearly 70% say they fear being required to make a large lump-sum payment at the end of their forbearance period—which isn’t true. “Some borrowers are falling through the cracks that we’re not picking up,” Lisa Rice, president and CEO of the National Fair Housing Alliance, told The Wall Street Journal. “It’s just a really sad series of events.”

Further, housing groups warn that the number of homeowners with past-due mortgage payments could swell even more as people who are currently in forbearance reach the end of their program terms in October. Those homeowners will need to request an extension from their lender if they need more time. “Borrowers who are eligible to be in forbearance will preserve their options to avoid foreclosure versus those who became delinquent and have accumulated penalties and interest in a march toward foreclosure,” Faith Schwartz, president of advisory firm Housing Finance Strategies, told the Journal.

Source:
“A Million Mortgage Borrowers Fall Through Virus Safety Net,” The Wall Street Journal (Sept. 18, 2020) [Log-in required.]
©National Association of REALTORS®
Reprinted with permission

admin

For all of your Real Estate needs, place yourself in the competent hands of a career Realtor who is a Philadelphia native and Delaware County resident. Skilled, smart and enthusiastic about his work and his life, Anthony DiDonato has the appealing combination of business sense and people skills gives him an edge in an industry that demands both.

Educated at Drexel University with a dual major in accounting and finance and minors in management and psychology Anthony DiDonato offers over 25 years of experience in the real estate industry. He has been a real estate investor since 1985 and a member of H.A.P.C.O. (Landlord Association). He became a licensed Realtor in 1992 and a member of the Local, Pennsylvania and National Associations of Realtors. Anthony DiDonato is also a member of the Computerized Multiple Listings, (MLS) and Internet Marketing Programs. In 1997 Anthony DiDonato became Century 21 All-Elite, Inc. Corporate Secretary.

Anthony DiDonato believes in taking his profession to the highest level of quality service. He is known for finding that “perfect” property in Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania for his buyers and helping his sellers prepare their properties so they sell quickly and efficiently.

When it comes time to negotiate the terms of a contract, Anthony DiDonato has the knowledge, experience, and professionalism applied to meeting – or exceeding – his clients’ expectations. His service to his clients is second to none. His honesty and integrity have been his claim to fame.

For Superior Real Estate Representation in the Delaware Valley, Philadelphia, Delaware County, Chester County, Montgomery County and surrounding areas in Pennsylvania… call Anthony DiDonato.