When Will Foreclosures Resume In Michigan
When Will Foreclosures Resume In Michigan – Through December 31, 2022, TransUnion and Equifax are offering all US consumers free weekly credit reports through AnnualCreditReport.com to help you protect your financial health during the sudden and unprecedented emergency caused by COVID-19.
The foreclosure was recently extended to June 30, 2021. For the most up-to-date information on foreclosures during the COVID-19 pandemic, visit the USA.gov foreclosures page.
Table Of Contents
- 1 When Will Foreclosures Resume In Michigan
- 2 Oregon’s Moratorium On Residential Mortgage Foreclosures Expires As Pandemic Rages On
When Will Foreclosures Resume In Michigan
An order to stay foreclosures on homes with government-backed mortgages during the COVID-19 pandemic was recently extended through June 30, 2021. What does this mean for homeowners who have found themselves in financial distress as a result of the ongoing outbreak?
The federal Coronavirus Relief, Relief and Economic Security Act (CARES), enacted in late March, includes a number of measures aimed at providing financial relief to Americans hit by the crisis.
One component of the CARES Act was a 60-day moratorium, or stay (later extended) of foreclosure proceedings against homeowners with federally-backed mortgages who were in arrears on payments. The moratorium order applies to borrowers with FHA loans, USDA loans, VA loans and conventional loans backed by Fannie Mae or Freddie Mac.
The moratorium prohibits lenders and service providers of government-backed mortgages from conducting evictions related to foreclosure and from taking legal action leading to a foreclosure. (It does not prevent non-government-backed lenders or service providers from operating foreclosures.)
If you were facing foreclosure prior to the passage of the CARES Act, it is possible that state or local laws will continue to protect you from foreclosure for the foreseeable future. If you’ve signed up for a mortgage forbearance program under the CARES Act, you’re also likely to be protected for a time.
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In addition to the homeowner protections put in place by the federal government, many state and local government agencies have issued their own policies. The specifics of these state and local foreclosure bans vary, and many will remain in effect until respective governors lift statewide emergency declarations — a goal that will vary as states set their own goals and timelines for reopening. Other states prohibit foreclosures until specified dates in late spring or summer.
The scope of state and local foreclosure actions also varies. Some measures freeze the entire foreclosure process, similar to the federal moratorium, preventing homeowner evictions and the court hearings needed to get them approved. Other measures prevent lenders from removing the occupants of a home (eviction) but allow foreclosure-related court proceedings to proceed.
The National Consumer Law Center maintains a state list of COVID-19 foreclosure measures, but cautions that it may be incomplete as states and localities constantly adapt to changing health and economic conditions.
To check for additional COVID-19 lockdown measures that may apply to you, visit your state or local government’s official websites. If you can’t find help there, try a web search for “foreclosure help” paired with your city, county, or state name.
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If you have a state-backed mortgage, the CARES Act entitles you to six months of mortgage forbearance — a reduction or suspension of your payments — with an option to extend for an additional six months. Lenders of non-sovereign conventional mortgages are not bound by this requirement, but some are offering voluntary forbearance programs in response to the coronavirus pandemic.
When you arrange mortgage forbearance through your lender under the terms of the CARES Act, your mortgage arrears status is “frozen” as it was before the forbearance began: if your loan was paid and in good standing, it will remain so even if you reduce it Payments or no payments during the grace period. If your payment status was 30 days past due when the deferral began, it will remain so and no additional delinquencies will accrue even if payments are suspended during the deferral.
Lenders typically do not notify borrowers of their intention to foreclose until mortgage payments are 90 days past due. So, by freezing mortgage arrears status, forbearance effectively puts foreclosure on hold even after the federal moratorium ends.
Contact your lender to arrange a mortgage forbearance under the CARES Act. Deferral is not automatic: If you stop your payments or make partial payments without notifying the lender, including for reasons related to COVID-19, your lender may report your payments as overdue.
Oregon’s Moratorium On Residential Mortgage Foreclosures Expires As Pandemic Rages On
Even the most generous foreclosure moratorium — one that prevents the lender from evicting you from your home and halts any legal process designed to evict you — is a stopgap at best.
If you’re 90 days or more past due on your mortgage payments, a foreclosure moratorium can keep you in your home for now. But be ready to deal with foreclosure proceedings when applicable moratoriums or forbearances end. To avoid having to vacate the property, you’ll need to reach an agreement with your lender — one that likely means repayment of the missed payments with interest and possible missed payment penalties before the moratorium was instituted by the bank’s CARES Act .
Eventually, if you qualify for mortgage forbearance under the CARES Act or any other program offered by your lender, you must repay any amount that you were excused from during the forbearance period. The CARES Act prohibits lenders from charging additional interest on these payments, but you still have to make the payments yourself. Details of the CARES Act repayment process have yet to be determined, but lenders cannot require borrowers to repay excused payments in a single lump sum at the end of the deferral period.
If a moratorium has bought you extra time, it is in your best interest to use that time constructively to arrange to remain in your home or, if necessary, find other forms of housing.
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If COVID-19 or other circumstances mean that you are unable to resume your mortgage payments (and potentially make up for missed payments) when forbearance or applicable moratoriums end, consider the following options:
A mortgage modification restructures the original terms of your home loan to make monthly payments more affordable. Lenders have a number of ways to do this, but the ones you’re most likely to encounter involve extending the life of your loan, allowing you to pay more interest over its repayment period in exchange for lower payments. Still, a change could keep you in your home while you work through a difficult financial time.
Lenders granting mortgage forbearance under the CARES Act have been instructed to work with borrowers at the end of their forbearance periods to prevent foreclosure, and a mortgage modification is an option they must consider.
Your best bet, if you know you won’t be able to resume monthly payments after a foreclosure moratorium or mortgage forbearance period ends, may be to sell the home. If the property is in good condition and your local real estate market is healthy, a six to 12 month mortgage forbearance period could give you time to complete a sale.
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If you find that your loan is “upside down” and you owe more on your mortgage than the market value of the property, consider a short sale. In a short sale, the lender agrees to pay off your mortgage debt by taking the proceeds from the sale of the home, even if it’s less than you owe. A short sale has negative consequences for your credit score, but they are less severe than those of foreclosure.
With a deed rather than foreclosure, you forfeit the home to the lender, but on terms that are less damaging to your personal credit than foreclosure. The arrangement may even leave you with some cash to help you transition into a new living space. However, lenders are under no obligation to accept these agreements and you can face significant tax consequences. You should therefore consult a Housing and Urban Development (HUD) consultant (see below), a solicitor and/or financial adviser before pursuing this option.
If you are facing the possibility of foreclosure today or at the end of a moratorium or grace period, or if you are a tenant facing eviction, consider using the following resources for information and assistance.
If you are the subject of a foreclosure, and especially if you live in a country where the names of foreclosure subjects are published in local newspapers or online, you may be targeted by individuals or companies who promise to remove the foreclosure for a fee.
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As the Federal Trade Commission warns consumers, any service that asks for an upfront payment, guarantees it can stop foreclosure, or claims it can use flaws in your mortgage agreement to force renegotiation of loan terms is unethical. Providers of these “services” prey on those who fear losing their homes. Paying them wastes money at a time when cash is desperately needed, but, perhaps worse, they can consume valuable time that would be better spent dealing directly with a lender or service provider.
One of the many reasons to avoid foreclosure is that it has a major negative impact on your credit score, which is second only to bankruptcy. The foreclosure will remain on your credit report for seven years from the date of the first arrears that led to the foreclosure.
Arrears have a serious negative impact on creditworthiness and creditworthiness, and because foreclosure typically occurs only after a borrower has missed at least three payments (gone
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