As the U.S. economy attempts to regain its footing from the pandemic, many American homeowners are trying to do the same. At the height of COVID, businesses folded, workers lost their jobs and millions suffered severe financial hardship as a result.
With a moratorium on foreclosures in place, many distressed homeowners turned to forbearance (under the CARES Act) to give them a little breathing room. Faced with the inability to make their full monthly mortgage payments, forbearance offered a brief pause or reduction in payments. As of August 2021, there are 1.6 million homeowners in some state of forbearance across the U.S. This number was much higher months ago, but now these homeowners are faced with making some tough decisions as the 12-month forbearance plans and extensions come to an end.
There are many things to consider when exiting the process including how much homeowners can afford and how they want to pay back the missed payments. Options are available, but homeowners need to do their homework to find the best solution for their situation.
In this article originally published in the Forbes Real Estate Council, ServiceLink’s Miriam Moore breaks down borrowers’ payment options and shares some proactive tips to help homeowners plan for a more solid financial future.