Forbearance and Foreclosure Moratorium ending. What’s Next?

Did you put your property in forbearance due to loss of income because of Covid-19? While many will be ringing in 2022 with New Year celebrations, those who are in forbearance will see their Fannie Mae or Freddie Mac program end this fall depending on when the homeowner applied with an 18-month maximum. The Foreclosure Moratorium ended on Sept 30, 2021. Facing an uncertain future regarding your home, it might be time to consider a solution on your own terms. By educating yourself on your options can help you to focus your efforts towards recovering what you can from the property NOW and avoiding the long-reaching consequences of foreclosure. Snappy Home Buyer has a solution. By working with a professional buyer, you can rely on, you will have a guaranteed closing date. While there are many cash buyers promising you full market value, these are often inexperienced buyers who are either trying to assign it and collect a fee or cannot qualify for financing, extending the short window you have to get a return on the sale of your home.  By acting before the bank calls in the loans that have been in forbearance, using our expertise, you can avoid the delays, and sometimes these new investors back out of the deal completely, so you start over.  Here is what the end of the foreclosure moratorium may mean for Philadelphia area homeowners.

Dealing With Foreclosure in South Jersey & Philadelphia

Do not become a graduate of the ostrich school of reality!  Homeowners will begin to receive notifications from their lenders once the moratorium is lifted. Usually, there is a grace period allowed for the homeowner to make the mortgage payments current. 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. Depending on the circumstances, you may need an attorney. Fees for legal assistance in foreclosure proceedings vary, many attorneys offer a flat fee arrangement, ranging from $1,500 up to $4,000. 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 for already strained Philadelphia homeowners.

Call Snappy at 267-389-3685

Financial Loss

At the end of the foreclosure moratorium, the payments on the mortgage that are past due will have been added to the loan, however, there will be no further acceptable delay on the monthly payments that follow. Our home is usually the largest investment we make and over time our equity is built. Without the intervention of life-changing circumstances, such as returning to work or new employment, the end of the foreclosure moratorium may mean loss of the equity in the property for Philadelphia homeowners. Even after foreclosure, there are still consequences.

  • You may also still owe any difference in 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 a period of 7 years.
  • Higher interest rates will add to your costs of living on any credit you do qualify for, due to the foreclosure.
  • In some cases, your chances at a job may be jeopardized by your credit history as well.

Let Snappy Home Buyer help you avoid these issues.  Snappy Home Buyer pays cash for homes in the Philadelphia Metro area including Delco, Montgomery, Bucks Counties in Pennsylvania.  Snappy Home Buyer pays cash in Salem, Gloucester, Camden & Burlington Counties in New Jersey.

Moving Expenses

Completion of the foreclosure moratorium may imply eviction for property owners in Philadelphia and South Jersey. As the process progresses, resulting in the last action in the foreclosure process, the new owner takes possession. An eviction process will certainly be executed, ultimately resulting in the property owners receiving notice of when the possession will occur, and the property must be abandoned. This period can differ, from 3 days to one month. After that, you’ll be confronted with the expenditures of relocating as a renter. You will require funds for down payments and utilities and everything associated with beginning over in a brand-new house. Don’t delay! If there’s no resolution in your economic circumstance visible, you could possibly wish to take into consideration selling your house now. Likewise, you could possibly pay more for rent or may also experience concerns in being approved as an occupant. Experiencing the loss of your home in repossession and the ultimate eviction that adheres to is psychologically draining along with the unfavorable monetary aspect. If you do not plan your life, others will do it for you, so the moment to act is currently!

But why not just sell through a realtor?

Good Question. Under normal market conditions, there is that option but there are 2.5 million houses in the Philadelphia MSA. Of those 13% have filed for forbearance. That’s 325,968 houses that will flood the market if they are unable to reach an agreement with their lending institution. This doesn’t include those who were in the foreclosure moratorium either. So not only will you pay extra fees through a realtor, but you will also be competing with a record number of vacant houses. Fun Fact: The last 10 months have seen a wildly escalating market. City dwellers fled to the suburbs to get more space overpaid for homes at a 25% premium. Everyone knows that one person “my neighbor sold his home for 300K so that’s what I want.” But the market sets the price.

Conclusion

Completion of the moratorium may create an enduring unpleasant monetary loss, watching your credit be damaged, spending for an unsought relocation, and additional financial obligation for homeowners in the Philadelphia area. Through either a conventional listing with a realty representative or selling by yourself, there’s no assured selling day or even if the home will sell. When you consider both the immediate and long-term costs, it may be better selling currently at a reasonably reduced rate compared to the traditional market, to guarantee your closing day and protect your future.

On January 1, 2022, your monthly home mortgage resettlements will be due once again and financial institutions will be beginning their process. You can sell to Snappy Home Buyer and avoid the loss of your home and all the hidden costs of repossession. Isn’t it worth 1 hour of your time to find out how Snappy can assist you? There is NO obligation! We’re happy to answer any questions or concerns you could possibly have. For more information about us, what we can offer, and what the ending of the moratorium may imply for you, send out us a message or give us a telephone call today at 267-389-3685

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