Category: Pandemic Response

COVID and Real Estate, Foreclosure Moratorium, Pandemic Response, Real Estate

THE END OF THE FORECLOSURE MORATORIUM IS NEAR

Lupe Ruiz, REALTOR®/Broker

Back in 2020, homeowners whose income was affected by the pandemic were given the opportunity to apply for a forbearance on their mortgage payments. According to a report from the Joint Center for Housing Studies of Harvard University, Black Knight reported that 14% of all mortgage holders filed for a forbearance during the pandemic. By March 2021, 68% of them had already exited the program either by resolving the delinquency or paying off their loans. Eight percent were still working some sort of loss mitigation agreement and 4% were still in delinquency in the first quarter of 2021. They also reported that about 22% of mortgage holders still in forbearance by the time the 18 months are up, have 10% or less equity and more likely will not have enough equity to sell with equity. (jchs.harvard.edu)

Recently, it was announced that the foreclosure moratorium would end July 2021. So, what if you are one of those mortgage holders who is in forbearance and at risk of foreclosure?  What is next?

The Consumer Financial Protection Bureau (CFBP) has implemented protections for you that will take effect on August 31, 2021.

  • Servicers will need to give you time to process your options and consider your situation. They must meet certain steps before they can initiate a foreclosure.
  • Servicers can offer streamlined loan modifications, which cannot increase your payment.
  • Servicers will be required to increase their outreach to borrowers before they can initiate foreclosure.

What are your options:

  • Resume regular mortgage payment. You can ask to defer your missed payments by moving them to the end of the mortgage.
  • Lower monthly mortgage payment. Ask to modify your loan. This can be changing the interest rate, principal balance or the term of the loan.
  • Sell your home. If you find yourself not being able to make your mortgage payments and have enough equity, you may be able to sell with some profit. If you find you do not have enough equity, you may apply for a short sale. Foreclosure should be the last thing to consider if you do not have enough equity.

A servicer can initiate foreclosure if you:

  • Abandon the property;
  • Were more than 120 days behind in your mortgage before March 1, 2020;
  • Are more than 120 days behind on your mortgage payment and have not responded to specific required outreach for more than 90 days; or
  • Have evaluated all options other than foreclosure and there is no other options available. (consumerfinance.gov)

Feel free to contact me if you are currently in forbearance and need guidance on exiting the program, or believe you will need to sell your home. I am here to help. I’ll be happy to guide you through the process.

Pandemic Response, Real Estate

How is Your Mental Health in the Midst of COVID-19?

Lupe Ruiz, REALTOR®/Broker

It’s been a while since I wrote in this blog. I got busy with my daily routine and responsibilities and gradually forgot about writing just like the many other simple and important things the busyness of this world has taken away from many of us. Unfortunately, it had to take an order to stay home for me to remember about writing in my blog. However, in the midst of all the ugliness this pandemic has brought to the world, there are some good things happening. People are turning back to the simple things in life: love, kindness, and compassion.

There are too many things going on at the same time right now. The world is changing rapidly and this can cause lots of anxiety and worry. For those of us who tend to suffer from anxiety or depression, it can be hard to balance everything at once. We can easily get overwhelmed by the new normal we are having to adjust to. Some are overwhelmed with having to balance working at home, homeschooling children and keeping up with the house chores. Others are stressed with working too much, constantly being exposed to the virus, and trying to keep their family safe. While others are worried because they either already don’t have a job or are afraid they will lose it in addition to the major impact the economy will have after all of this has passed.

We don’t really know what is going to happen or how bad it will be, but the first thing we need to do is live day by day, have faith, and not worry or fear. We need to implement some self care! I am not a mental health expert, but I can share from experience what has worked for me. Here are a few things that might help:

  1. Keep your medicine routine. You might need to set an alarm to remember but you need to keep your daily routine and not forget to take your medicine.
  2. Keep a journal. Even if you don’t feel like writing, make the time to write how you are feeling throughout the day.
  3. Set boundaries. When you are hurt, sad, or angry by someone’s actions towards you, it more likely means a boundary has been violated. Find out what it is and make changes.
  4. Watch what you eat. Eat a balanced diet. Be intentional about what you eat. Don’t eat out of anxiety or boredom.
  5. Have some “me” time. Don’t isolate yourself, but do have some time on your own to recharge. You know what works best for you. Listen to happy music. Pray and meditate. Exercise. Watch a funny movie. Read a book. Bake. Work on your garden. Listen to calming sounds and just relax. Whatever works for you…as long as it’s healthy.
  6. Lean on your support. It can be a friend, a family member, a spiritual leader, or your therapist but you need to have someone you can talk to when you are feeling down. Make it a point to talk to someone about your feelings, don’t bottled them up.