When Will Foreclosures Start Again?
The COVID-19 pandemic created an incredible challenge for millions of homeowners across the United States. To help people who had fallen behind on their home payments, the United States government announced a foreclosure moratorium on Federally backed home loans. However, that moratorium is now coming to an end.
Don't risk your house to foreclosure with these changes. We are here to answer your questions and provide qualified legal advice – call us today at 866-261-8282 or schedule a free consultation.
The foreclosure moratorium will come to an end on July 31, 2021
Currently, the foreclosure moratorium is expected to come to an end on July 31, 2021. As of right now, there is no extension on the foreclosure moratorium expected. After July 31, 2021, the foreclosure process on Federally backed mortgages can be expected to begin.
When will the mortgage forbearance lapse?
The mortgage forbearance program - which allowed some homeowners to pause their mortgage payments - is expected to lapse on September 30, 2021. Currently, about 1.75 million borrowers or 3.5% of U.S. mortgages are enrolled in the program. After this date, all payments on Federally backed mortgages are expected to resume.
How to get foreclosure help
It appears that there will soon be no more Federal backstop when it comes to halting mortgage foreclosures or suspending mortgage payments, therefore it is important for people who are currently behind on their mortgage payments to immediately seek foreclosure help. One of the most effective ways to protect your home is to work with a bankruptcy attorney to discuss loan modifications, alternate payment plans, and other strategies to protect your home using a Chapter 13 bankruptcy.
In the state of Michigan, Acclaim Legal Services can provide the expert assistance needed to help homeowners fight foreclosures. We have a top team of bankruptcy attorneys and financial specialists who understand the foreclosure process in the state of Michigan and can help save your home.
How we can help?
At Acclaim Legal Services, we can help protect your home from foreclosure utilizing Michigan’s favorable Chapter 13 bankruptcy laws. Chapter 13 bankruptcy in the state of Michigan is designed to immediately stop your foreclosure and provide reasonable repayment plans designed to help protect your assets including your home. With the Chapter 13 bankruptcy option, you will be able to do the following:
- Immediately and legally stop a foreclosure sale before the sheriff’s sale;
- Consolidate, prioritize, and reduce your debts;
- Receive court protection from your other unsecured creditors while you prioritize the payback to your mortgage and other secured debt obligations;
- Rebuild and improve your credit;
- Create a court approved repayment plan
How long do you have to pay back your debt with Chapter 13 protection?
Under the Michigan Chapter 13 bankruptcy laws, you have to make your best effort to pay back your debts in a 36 to 60-month period. Any unsecured debts that are not paid at the end of that period are legally eliminated through a court discharge.
The Federal government’s foreclosure moratorium and mortgage forbearance programs are coming to an end. Now is the time to take action to protect your home. Our foreclosure experts can help save your home and put you on the right track to financial recovery. Contact our offices to learn more.
Schedule a free consultation with Acclaim Legal Service to discuss your questions with one of our qualified attorneys.
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