Preparing for a Wave of Delinquent Mortgages

Preparing for a Wave of Delinquent Mortgages

Mortgage servicers are preparing for a wave of delinquent mortgages and possible foreclosures to hit the market but say they have already taken steps to mitigate their impact.

Realty Biz News said, “The U.S. government made mortgage forbearance available to any home loan borrowers in the early days of the COVID-19 pandemic. Those who took up the option then are now entering their last possible quarter of relief. That period will end in September, after which borrowers will need to

  • start making payments again,
  • sell their homes or
  • go into foreclosure.

Of the 7.25 million who took forbearance, 72% have since exited, leaving just 2 million still active in the programs.”

Preparing for a Wave of Delinquent Mortgages

CNBC reported that 575,000 borrowers’ forbearance plans would expire at the end of September and early October. For mortgage servicers, it means they face dealing with a deluge of troubled loans all at once.

The government-sponsored entities Fannie Mae and Freddie Mac, along with the Federal Housing Administration, helped the mortgage servicers with new guidelines for borrowers who’re exiting forbearance programs. The guidelines mean to assist borrowers struggling to pay their loans. The assistance includes more interest rate reductions that will be made available through loan modifications.

What Options Do  Borrowers Have?

Borrowers who cannot afford to pay have the option of letting their home fall into foreclosure or selling the property, which may even net some a decent profit in the current red-hot housing market.

For all of the efforts made by mortgage servicers on behalf of borrowers, there will almost certainly be a jump in foreclosures in the fall and winter. That’s because some borrowers will have no other recourse.

Two Ways to Stop Omaha Foreclosure

  1. A Deed-in-Lieu of Foreclosure – a deed instrument in which the borrower conveys all interest in real property to the mortgagee (i.e., the lender) to satisfy a loan that is in default and avoid foreclosure.  At the height of the housing crisis in 2007-2008, it was called “jingle mail.” Homeowners put the house keys in an envelope, mailed them to the bank, and then drove away. A deed-in-lieu is a more formal process for jingle mail.
  2. Sell the Home to a Cash Buyer 
    1. How to stop an Omaha foreclosure? Try calling us. It is quick!You can sell your house fast in Omaha, generally in 30 days or less. That is much quicker than a traditional sale, which can take several months. In most cases, when an investor and a seller can agree on a price immediately, they can close as fast as one to two weeks.
    1. A real estate investor will buy as-is. For example, are you worried about some repairs that you’ll need to fix based on an appraisal? An investor will estimate the repairs needed to restore your property, arrive at an offer, and will purchase the property in whatever condition.
  3. No Fees! A real estate investor doesn’t charge you a real estate commission and may take care of any other nagging financial problems such as back taxes, code violations, the risk of foreclosure, or past due water and sewer bills.

FREE information on How to sell your house fast

Styl Properties, Inc. is here to help homeowners out of any distressed situation.  

As investors, we are in business to make a modest profit on any deal. However, we can help homeowners out of just about any situation, no matter what!  There are no fees, upfront costs, commissions, or anything else.  We offer the simple truth about your home and how we can help you sell it fast.

Give us a ring. We would love to help you understand the process and to answer all of your questions. You can reach us at 402 999.0577

Photo by Alice Pasqual on Unsplash

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