COVID-19 Pandemic Paving the Way To Foreclosure Crisis? How to Avoid It...
- Blake McLemore
- Jan 28, 2021
- 3 min read
Updated: Feb 14, 2021
The year 2020 was nothing short of a challenging year for our nation and, for that matter, the entire world. The COVID-19 pandemic and its devastating, continued presence has left Americans wondering "what's in store for 2021," as many anxiously await access to the COVID-19 vaccine. Frankly, who knows? One thing, however, is certain - many Americans are facing eviction or foreclosure due to the pandemic, and our country is on the cusp of a potential housing crisis.
Importantly, the 2020 unemployment rate has declined from an alarming 14.8% in April to 6.7% at year end, which suggests that jobs are coming back and Americans are returning to work. However, when compared to the 3.5% unemployment rate in January 2020, the fact remains that Americans are still being furloughed or laid off, and, in turn, struggling to pay their mortgage or rent. How do I know? Take a look at the Executive Orders signed by both the Trump and Biden administrations concerning the eviction and foreclosure moratoriums.
In September 2020, the Trump administration ordered the CDC to ban landlords from evicting tenants for nonpayment of rent through the end of 2020. President Biden has now extended the federal ban through March 2021. We are seeing a similar extension for single family mortgages insured by the Federal Housing Administration (FHA) or guaranteed by the Office of Native American Programs’ Section 184 and 184A loan guarantee programs through March 31, 2021. With the added help of stimulus checks and relief offered by some local governments, the moratoriums will hopefully give tenants and homeowners the ability to get back on their feet and making payments (although that is arguably not why the moratoriums were put in place - it would be an added benefit while slowing the spread).
However, the fact remains that this virus will not disappear overnight. Further, as of December 2020, almost 20% of households were behind on rent, and, in October 2020, 6.1% of homeowners with mortgages were behind on payments by at least 30 days or more (a 2.4 percentage point increase from October 2019). What does all this mean?
Homeowners are behind on mortgage payments and facing foreclosure. Renters are behind on rent payments, and, unless the moratorium is extended, facing eviction, which, in turn, affects a landlords ability to pay off their debt or earn the rent they expected to receive from a paying tenant. This got us thinking.
Are there options to avoid foreclosure?
Absolutely! For those with some time on their hands, these options could include seeking forbearance, refinancing, modifying the loan (after speaking with the lender), consolidating debt, waiting for more government relief, and/or working with a real estate agent to prep and sell the house - which, on average takes about 55-70 days. Granted, the time it takes to sell could be shortened if the location, property condition, and state of the market are all favorable. However, some just do not have the luxury of time, or the money to spend on prepping and repairing the house for sale. What are their options?
HOMEmade Properties is Here to Help Homeowners Avoid Foreclosure
That's where HOMEmade Properties can help! For those facing foreclosure only wishing to avoid it, we offer a quick, easy solution - we can buy your house as is, for cash, fast - allowing you to avoid the foreclosure process and solve your housing problems. No prepping, no commissions, no gimmicks. We are here to help in these unprecedented times. To learn more, visit us at https://www.homemade-properties.com/webuy.
HOMEmade Properties Can Help Landlords and Tenants Too
For those struggling to pay or receive rent payments, perhaps we can come up with a creative solution for you as well. For landlords, we may be able to take those problem properties off your hands and work with tenants on their financial situation. Check us out at https://www.homemade-properties.com/webuy and get in touch to let us know how we can help!
For those looking to sell their house in GA, we are currently looking to buy homes, as-is, for cash, fast in the Roswell, GA and surrounding areas. For those outside these areas, do not hesitate to reach out either! We are always open to explore new solutions in new areas. Help us, help you!
For more info on foreclosures in Georgia, please visit https://law.georgia.gov/resources/mortgage-and-foreclosure-information. Remember, you have options, and you can take control of your foreclosure situation. Contact us to learn more and stay safe!
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Thanks for the info! Looking forward to more posts!