Due to the COVID-19 pandemic many U.S Borrowers are putting their mortgage payments on hold. In fact delayed payments are already approaching 14% of all loans.
“The government’s program, part of the CARES Act, which President Donald Trump signed in late March, allows borrowers to delay up to a year’s worth of payments. Those payments must be made up later through either repayment plans or mortgage modifications. Government-backed loans make up about three-quarters of the current mortgage market, but for borrowers without those loans, most banks and private lenders are also offering forbearance programs……”
Not since the mortgage crises of 2007 will banks be once again faced with an overwhelming amount of mortgage modifications. For this reason, its important to weigh your options and if you feel you will not be able to make up your delayed payments or simply not be able to keep up with your current mortgage payments its time to apply for your mortgage modification. The trick is to apply before thousands of homeowners decide to apply for their own mortgage modification which is inevitable. When the banks become inundated with mortgage modifications it could take between 5 to 8 months to get an approval or denial. This is exactly what happened from 2007 to 2010 until the banks reorganized enough to get a grip on reviewing mortgage modification applications. Don’t let this happen to you, apply for your modification as soon as you can so you beat the modification application rush. Banks know they will be modifying hundreds of thousands of mortgages in the next couple of years otherwise the mortgage industry will collapse. If you are in need of mortgage assistance, don’t bury your head in the sand like most but rather attack the issue early so your mortgage company can review your application and lower your mortgage rate before you get saddled with the possibility of delays. Remember, these delays can often result in the bank commencing foreclosure against your home.