The government responded to the COVID pandemic by allowing for mortgage forbearances. One of the first acts of the Biden administration was to extend existing mortgage forbearance from March 30 until June 30,2021. This additional period allowed homeowners with conventional loans to request one additional three-month extension, for a total of 15 months of loan forbearance.
To be eligible you had to have been in a COVID-19 forbearance prior to February 28, 2021.
In addition, homeowners with government-backed loans such as FHA, VA, AND USDA could request two additional three-month extensions, for up to a total of 18 months.
Once the forbearance period has ended, there are several options:
- Full repayment of the amount not paid;
- Resume regular payments and also payment an additional monthly amount;
- Lengthen the term of the loan and add payments to the end of the loan.
- Modify the loan perhaps by lowering the interest rate or reducing the monthly payment.
If these options will not work for you, Chapter 13 bankruptcy will allow you up to 5 years to pay the bank amount and also help deal with credit card debt.
Please call Attorney Lynn Feldman at Feldman Law Offices, PC to discuss your best option. 610-530-9285