{"id":369141,"date":"2020-04-08T08:37:29","date_gmt":"2020-04-08T13:37:29","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/realestate\/foreclosure\/saving-your-home-during-and-after-the-pandemic.html"},"modified":"2024-03-19T11:29:48","modified_gmt":"2024-03-19T16:29:48","slug":"saving-your-home-during-and-after-the-pandemic","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/realestate\/foreclosure\/saving-your-home-during-and-after-the-pandemic.html","title":{"rendered":"Saving Your Home After an Economic Crisis"},"content":{"rendered":"\n
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Saving Your Home After an Economic Crisis<\/h1>\n
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\n By FindLaw Staff<\/a> | Legally reviewed by Robert Rafii, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

The spread of coronavirus made many borrowers concerned about paying their rent or mortgage. It’s unknown when the next pandemic or economic crisis will hit. So, learning early on about saving your home is beneficial. With rising sale prices, interest rates, and inflation, economic uncertainties continue to plague homeowners.<\/p>\r\n

Whether you’re already seeing repercussions from losing income or are nervous about the future of your home, we outline the major issues below.<\/p>\r\n

Foreclosure Changes During Crises<\/h2>\r\n

Paying your mortgage may be top of mind if your job is on the line. Under normal circumstances, a home loan has terms setting how many months you can be behind on payments before possible foreclosure. Often, it’s four to six months before the lender can take action.<\/p>\r\n

The Real Estate Settlement Procedures Act (RESPA)<\/a> gives you time to find a solution with your mortgage company. There are also options for relief through most major mortgage companies. Often, payment plans or other deals can be worked out.<\/p>\r\n

Under emergency circumstances, state governments can slow this timeline through foreclosure moratoriums to help residents. For example, in the wake of the last pandemic, many governors temporarily banned lenders from starting the foreclosure process. States like New York, Maryland, and North Carolina instituted foreclosure protections and forbearance programs to stabilize the housing market. Many mortgage loan lenders had to wait at least 90 days before bringing up foreclosure proceedings. Under COVID-related laws in multiple state jurisdictions, loan providers had to offer deferral periods to help homeowners catch up with repayment.<\/p>\r\n

Even without government involvement, sometimes lenders might offer some grace. In the context of single-family residential foreclosures, they might forego charging late fees or reporting temporary delinquencies to credit companies. Other mortgage servicers may offer loss mitigation, such as special loan forbearance options<\/a> that are tailored to your specific circumstances.<\/p>\r\n

What Might Happen After a Crisis Is Over<\/h2>\r\n

Some people will still face foreclosure sales and eviction when a crisis ends. For example, when COVID-19 ended, many homeowners were suffering, even with government help or adjustments from their lenders. Statistics show that foreclosure rates evolved<\/a> through and after the pandemic. After a crisis, people without jobs may still be struggling with financial hardships, causing foreclosure activity to increase.<\/p>\r\n

A lender offering you a great deal may come with some unfortunate fine print. It’s essential to know the terms of any mortgage relief deals, such as:<\/p>\r\n