Foreclosure Assistance Agent

Government Programs to Help Pay Mortgage, 2021?

American Rescue Plan Provisions Pertaining to the Homeowner Assistance Fund. This document contains the legislative language in the American Rescue Plan Act, enacted on March 11, 2021, that authorizes the Homeowner Assistance Fund.

Can Banks Foreclose During Covid-19? Foreclosure Assistance Agent

Yes ? See below:

Virginia

  • Eviction Protections: Applications are being accepted for the Virginia Rent Relief Program, which provides financial assistance for rental payments. (Local programs are available to residents of Chesterfield and Fairfax Counties.) As of January 1, 2021, landlords and tenants are required to work together to access rental assistance before an eviction can proceed. On March 5, 2021, Governor Ralph Northam announced a new Virginia Eviction Reduction Pilot program, which will provide grants to local eviction prevention and diversion programs. Other actions taken during the pandemic include the launch of StayHomeVirginia.com, a website with resources for tenants and homeowners, and the allocation of funding to the Legal Services Corporation of Virginia to provide legal services to tenants facing eviction.

  • Utility Shutoff Protections: A moratorium on utility disconnections will end on August 29, 2021. Financial assistance for utility customers who have experienced financial hardships due to the coronavirus pandemic may be available from local utility relief programs.

  • Mortgage/Foreclosure Relief: Work is in progress to launch a new Virginia Mortgage Relief Program that will provide financial assistance for housing-related expenses (such as mortgage payments) to homeowners who have experienced financial hardships due to COVID-19. Through September 28, 2021, homeowners and housing owners who rent residential property can receive a 30-day pause of foreclosure proceedings if they have experienced a loss of income due to the coronavirus pandemic. Additional resources for homeowners are available from Virginia Housing and StayHomeVirginia.com.

How to Stop Foreclosure During Covid-19?

Call your mortgage servicer right away. Your servicer is the company or bank you send your mortgage payments to every month. Do not stop making payments without talking to them.

You also have a mortgage lender. This may be different than your servicer. The lender owns your mortgage. If you don’t know who your lender is, ask your servicer. What rules apply to you depends on your lender.

Federally-Backed Mortgages
For many loans, servicers have to offer you forbearance options if you ask for help because your income has been affected by the COVID-19 emergency. Forbearance means your payments are not due until the end of the forbearance period. A forbearance can be up to 12 months. You still owe all your mortgage payments for that time, but they can’t charge you late fees or report missed payments to the credit bureaus.

At the end of the forbearance period, you need to work with your servicer to start making payments again, and to deal with the payments you missed in the forbearance. There may be multiple options to catch up on your payments. Talk to your servicer before your forbearance ends.

If you ask for help, servicers have to offer forbearance options for the following types of federally-backed loans:

  • FHA
  • HUD Reverse Mortgage
  • VA
  • USDA
  • Fannie Mae
  • Freddie Mac

If you have one of these loans and need a forbearance, contact your servicer and tell them that you are having financial hardship due to COVID-19. They should give you a forbearance without asking for documentation that proves your hardship. 

When you can ask for forbearance and how long a forbearance lasts depends on the kind of loan you have:

FHA/VA/USDA and HUD reverse mortgage loans:

  • You can ask for a COVID forbearance through September 30, 2021.
  • If you had your forbearance on or before June 30, 2020, you are eligible for up to 18 months of forbearance.
  • If you got your forbearance between June 30, 2020 and September 30, 2020, you are eligible for up to 15 months of forbearance.
  • If you got your forbearance between September 30, 2020 and June 30, 2021, you are eligible for up to 12 months of forbearance.
  • If you apply for and get a forbearance between July 1, 2021 and September 30, 2021, you are eligible for 6 months of forbearance.

Fannie Mae/Freddie Mac loans:

  • Currently, there is no deadline to ask for a COVID forbearance. BUT apply as soon as you have money issues. Don’t wait until you miss a payment!
  • If you had your forbearance on or before February 28, 2021, you are eligible for up to 18 months of forbearance.
  • If you got your forbearance on or after March 1, 2021, you are probably eligible for up to 12 months of forbearance. This might change, check back for updates.

Private Bank Mortgages
If your mortgage is not a federally-backed mortgage like the ones listed above, it is owned by a private bank. If that is the case, your servicer does not have to offer forbearance options. But your servicer may voluntarily offer a forbearance or have other COVID-related options. Contact your servicer right away and ask for information and options directly from them.  

Foreclosure Assistance Grants?

Virginia mortgage help and foreclosure assistance programs.
Find assistance with your mortgage and foreclosure help in Virginia, including in the cities of Norfolk and Virginia Beach. In addition to the state and non-profit organizations in the region offering free foreclosure assistance, counseling, and mortgage help which are listed below, homeowners have other options. Call an agency below in order to find additional services, aid, and grant programs that can help you with paying other debts and bills. More.

Free foreclosure counseling in Blue Ridge Virginia area
Homeowners in the Blue Ridge section of Virginia can receive foreclosure counseling and advice from the Blue Ridge Housing Network. Specialists and counselors will advise borrowers on what programs they may qualify for. Click here to learn more about the Blue Ridge Housing non-profit agency.

Mortgage assistance for Virginia unemployed homeowners
The federal government’s HUD agency is providing tens of millions of dollars in aid to homeowners in Virginia who have lost their jobs or who have had a reduction in income. This can help you pay your home loan and provide people time to find a new job. Read more on the Virginia Emergency Homeowner program.

Government certified counseling agencies in Virginia
The federal government HUD department has approved several non-profits in Virginia. Contact one of these non-profit organizations to receive free or low-cost housing counseling and foreclosure prevention advice. More on Virginia-free HUD agencies.

Foreclosure During Covid 2021?

The Biden-Harris Administration extended the foreclosure moratorium and mortgage forbearance enrollment period for homeowners with government-backed mortgages to provide relief to struggling homeowners. On June 24th, the Administration extended the foreclosure moratorium for a final, additional month until July 31, 2021, and the forbearance enrollment window through September 30, 2021, and provided up to three months of additional forbearance for certain borrowers.

These actions were taken by three federal agencies that back mortgages – the Department of Housing and Urban Development (HUD), Department of Veterans Affairs (VA), and Department of Agriculture (USDA). The Federal Housing Finance Agency (FHFA) provided similar relief for mortgages backed by Fannie Mae and Freddie Mac. So if you are looking for a foreclosure TODAY you are unfortunately out of luck,

Are Foreclosures On Hold Right Now?

It’s been over a year since lenders and the federal government stepped in to help Americans stay in their homes amid the global health and economic crisis caused by the Covid-19 pandemic. And many Americans still need that support.

About 2.1 million homeowners are still in forbearance plans that suspend their mortgage payments, according to Mortgage Bankers Association’s latest data. And about 1.8 million families are not in forbearance, but are already at least 90 days delinquent on paying their mortgages as of April, according to the latest data from Black Knight, which monitors mortgage data.

For now, many are protected from eviction through a foreclosure moratorium on federally backed loans.

But those protections are running short on time. President Joe Biden extended the federal foreclosure moratorium earlier this year, but that will expire on June 30, 2021. Many of the forbearance programs on federally backed loans are set to lapse this fall.

In a hearing Wednesday, Senators asked the CEOs of several major banks about what they plan to do to help Americans caught in this situation. Here’s what the heads of Bank of America, Chase, and Wells Fargo said.

Wells Fargo

Wells Fargo plans to extend foreclosure protections beyond the current federal moratorium. “For the loans that we own, we have extended our moratoriums for foreclosures and evictions until the end of the year,” CEO Charles Scharf said at the hearing Wednesday.

When CNBC Make It followed up with the bank, a spokesperson for Wells Fargo reiterated that except in very specific cases, the bank has stopped all foreclosure-related activity on occupied properties through the end of 2021 and has halted all evictions through the end of the year.

Additionally, Wells Fargo supports the Consumer Financial Protection Bureau’s proposed rule that would prevent lenders from starting foreclosure proceedings until 2022. “We support the CFPB’s efforts to make this apply for the whole industry, but we are not waiting for them to make this decision where we service mortgages for ourselves,” the spokesperson said.

Bank of America

Bank of America CEO Brian Moynihan said in the hearing that the bank’s suspension of all foreclosures would run through the end of the quarter, which ends June 30. He added that the number of Bank of America customers who are still in forbearance, and potentially at risk of falling delinquent, is down by 90%.

“The good news is the number of deferrals is way down, and most of the clients have become current,” Moynihan said. “Irrespective of that deadline passing, we’ll continue to work with a few clients we have left to help them.”

A spokesperson for Bank of America said on Wednesday that Moynihan was referring to the June 30 moratorium deadline and said the policy applied to both bank-owned loans as well as government-backed loans the bank services.

JPMorgan Chase

JPMorgan Chase CEO Jamie Dimon did not comment on when Chase planned to resume foreclosures and evictions during the hearing but said that about 90% of Chase customers had also exited forbearance programs.

Dimon’s written testimony specified that the bank has extended forbearance options for about 2 million mortgages, auto, and credit card accounts since the start of the pandemic.

A Chase spokesperson said in an email to CNBC Make It that credit card relief accounts for a little more than half of the 2 million customers impacted and that the difference is split almost equally between home lending forbearances and auto relief.

On the mortgage foreclosure moratorium, the Chase spokesperson said the bank is continuing to align with the various state and federal foreclosure moratorium deadlines for all loans in its portfolio. On the federal level, that deadline is currently set for June 30.

Chase declined to comment on whether the bank supported the CFPB’s proposed rule banning foreclosure proceedings until 2022, while Bank of America has yet to respond.

Morgan Stanley CEO James Gorman said that his financial institution does not operate in consumer mortgages. Citi CEO Jane Fraser and Goldman Sachs CEO David Solomon were not addressed.

Most homeowners have exited mortgage forbearance programs—but those who are left are the most vulnerable.

As of March 2021, about two-thirds of homeowners who signed up for some type of mortgage forbearance during the Covid-19 pandemic have exited the programs, according to new research from the New York Federal Reserve. Only 35% of borrowers, or about 2.2 million homeowners, who signed up for forbearance remain in these programs, the New York Fed found.

But those who remain in forbearance typically have lower credit scores and live in lower-income neighborhoods, making them more susceptible to losing their homes when these programs end later this year.

“The borrowers in the subprime credit score buckets are much, much more likely to have both entered forbearance, and still be in forbearance at this point,” says Joelle Scally, a financial and economic analyst with the New York Fed and an author of Wednesday’s report.

In contrast, homeowners with the highest credit scores have typically already exited forbearance.

Many of the current forbearance programs were set up in the CARES Act last year and apply to federally-backed loans offered through agencies including Fannie Mae, Freddie Mac, the Federal Housing Administration, and the Department of Housing and Urban Development. Private lenders and servicers also set up their own forbearance programs.

The report found that those who have FHA-backed mortgages were more prone to enter forbearance. That’s because these mortgages are typically held by first-time homebuyers who live in lower-income areas.

About 70% of all homeowners still in forbearance are not making any payments, and the worst-case scenario, the researcher’s estimate, is that about 2.9% of all mortgage borrowers could end up in delinquency. That means the serious delinquency rate, which is defined as payments that are over 90 days late, would shoot up from 0.9% currently to 3.8%.

That’s still much lower than the 6.3% delinquency rate seen in 2010 in the midst of the Great Recession.

But “even if we don’t see levels of delinquency that rival those of the Great Recession, that still could represent a significant amount of hardship for the households involved and it would still be a relatively sharp increase in where we are today,” says Andrew Haughwout, one of the report’s authors and senior vice president in the New York Fed’s research and statistics group.

The good news is, this will perhaps not be the “wave” of foreclosures that some experts predicted would occur this fall, once these forbearance programs start to wind down.

In fact, to prevent an overwhelming surge in Americans losing their homes, Consumer Financial Protection proposed a rule earlier this year that would prevent lenders from starting foreclosure proceedings until 2022. The CFPB’s proposed rule would cover all homeowners, including those with mortgages through private lenders such as banks.

The CFPB’s plan, however, is only a proposal at the moment. The agency was seeking public comments through May 11 before issuing a final rule.

HUD Counseling Agencies by Zip Code?

As a full-time Charlottesville realtor since 2003, I witnessed the 2008 Charlottesville real estate crash of 2008 and 2009. There were numerous Charlottesville foreclosures and many of my friends lost their homes. Back then very little was known about foreclosures and I know how to be a savvy Charlottesville Foreclosure assistance agent. But things have changed since then and there’s a ton of help for you. Here is how I would be able to help you…

  1. I would meet with you and learn everything about your specific scenario and your lender. Every lender is different and knowing who they are is the first thing we need to discuss.
  2. Visit https://www.vhda.com/Homeowners/Pages/AvoidingForeclosure.aspx and learn about Virginia Housing’s Loss Mitigation program — download their Borrower’s Assistance Package to learn more. 
  3. Stay in weekly contact with your lender. I will also speak to them. Having a savvy Charlottesville foreclosure realtor really helps. They can’t BS me and I know the right questions to ask.
  4. Veterans apply for a VA Loan Modification immediately to stop the foreclosure process. A new rule by the U.S. Department of Veterans Affairs (VA), effective February 7, 2011, makes VA loan modifications more flexible and encourages lenders to modify more loans.
  5. To avoid foreclosure costs, your lender may be willing to:
  6. Postpone your Charlottesville foreclosure process, giving your client the chance to sell their home and pay off their debts.
  7. Help you set up a temporary monthly payment plan while they wait for their Charlottesville home to sell.
  8. Agree to a short sale in the event that the mortgage is “underwater,” i.e. if the homeowner owes more on their home than it’s currently worth. Because consenting to a short sale means accepting less money than they’re owed, the lender may ask the homeowner to pay off the balance of their debt after their Charlottesville home is sold. But in some situations, the lender may forgive amounts owed that exceed the home’s final sales price.

Charlottesville HUD Counseling Phone Numbers?

Below you will find an extensive list of HUD-approved agencies in Charlottesville. Many of the foreclosure assistance programs and services they offer are free or low-cost.

  1. CLEARPOINT FINANCIAL SOLUTIONS 877-877-1995 1658 State Farm Boulevard, Suite B, Charlottesville, Virginia 22911
  2. PIEDMONT HOUSING ALLIANCE 434-817-2436-104 1215-B East Market Street, Charlottesville, Virginia 22902