Holiday Season In Mortgage Forbearance.

The holiday season is synonymous with the festive season, time to celebrate with family and friends. Ideally, the holidays represent reunions of loved ones, sharing, happiness, and time to share the love. 2020 is a different year. We need to comply with the authorities’ recommendations of keeping social distancing to avoid the COVID-19 from spreading.

The pandemic has hit all sectors and industries of our country and around the world hard. Despite measures to keep the population safe, our country, unfortunately, has the world record in deaths and coronavirus infections. A burning household economy is destroying hopes and dreams. Homeowners and small landlords with federal-backed mortgage loans have had the chance to deferral or forbearance their home loans. Since April, Near three million mortgage loans have been approved for a forbearance plan.

COVID-19 The Grinch.

As in Dr. Seuss’s story, “How the Grinch stole Christmas,” the novel COVID-19 is stealing the 2020 Christmas spirit. The Christmas gifs under the tree of life could be vanished but not destroyed. The coronavirus Grinch may hide the people’s health and tranquility, but they will reappear to make everyone healthier and in peace.

According to the U.S. Bureau of Labor Statistics, total nonfarm payroll employment rose by 245,000 in November 2020, and the unemployment rate edged down to 6.7 percent,

Despite the strong headwinds of curfews, shutdowns, a deepening increase in Covid-19 cases, and companies delaying business decisions (as they await the rollout of the vaccine), the economy and job market withstood the stormy weather. It was reported that “14.8 million persons reported that they had 

The Department of Labor pointed out the discouraging statistics, “The number of unemployed persons, at 10.7 million, continued to trend down in November, but is 4.9 million higher than in February.” The jobs report indicated, “In November, the number of long-term unemployed (those jobless for 27 weeks or more) increased by 385,000 to 3.9 million, accounting for 36.9% of the total unemployed.”

Despite these discouraging numbers, the economy has regained about 12,000,000 of the 22,000,000 jobs lost since last April 2020. However, The U.S. is going through another period of restrictions and lockdowns. As businesses are once again ordered to shut down or downgrade their operations, many will permanently close doors, and workers will face massive layoffs. The near future picture is not a good omen for those who have a mortgage forbearance plan and struggle to keep their houses.

Mortgage Forbearance Deadline.

Homeowners with mortgages covered by the CARES Act need only explain that, directly or indirectly, they have financial difficulties related to the pandemic. According to the Mortgage Bankers Association (MBA), more than 3 million homeowners have been approved for forbearance plans. For those needing help, December 31, 2020, is the deadline to request relief.

Mitch McConnell introduced the CARES Act on March 25 as an amendment to H.R. 748, replacing entirely the original bill. None of the original languages of it have remained. The Middle-Class Health Benefits Tax Repeal Act of 2019 (H.R. 748) aimed at cutting taxes on certain health care plans. It was introduced in the House on Jan. 24, 2019, passed on July 17, 2019, and was sent to the Senate the next day. Nothing happened to it until March 2020, when Congress began putting together a stimulus package to alleviate an economy battered by the effects of COVID-19. The now named CARES Act was passed by Congress with overwhelming bipartisan support and signed into law by President Trump on March 27th, 2020.

Resuming mortgage payment.

At the end of your forbearance plan, you must repay your missed payments, but you have options to do it. You can choose one of the following:

  • Reinstate (pay the total amount due at once.)
  • Repay the forbearance amount (in addition to your normal monthly payments) over the next 12 months.
  • Defer payments (add missed payments to the end of the Mortgage loan). If eligible, using the COVID-19 Payment Deferral will allow you to keep making regular monthly payments until you pay off, refinance your mortgage or sell your home (at which point, the total unpaid forbearance amount is due).
  • Modify your loan (permanently change some of the terms to make payments affordable).

Conventional home loans are those non-federal-backed. When approving or denying applicants for mortgage forbearance, conventional loan servicers don’t use standard criteria. There are no government controls or official guidelines to supervise servicer’s performance. In essence, they can do whatever they want. It is highly recommended while you are in forbearance, to monitor your loan periodically, and have a plan to act when the forbearance plan draws to a close.

At Better Off Home Buyers, we have received reports of homeowners that were screwed by their servicers. Some homeowners have reported to us they naively trusted their servicers without writing proof, and later they regretted it. However,  if your loan is not a federally backed mortgage, your servicer is highly encouraged to follow The CARES Act same guidelines.

According to the MBA December 14, 2020, report, the number of homeowners applying for a home loan modification has increased, during the fourth quarter of 2020, more borrowers are looking for relief requesting forbearance. 

MBA’s Senior Vice President and Chief Economist declared. “Compared to the last two months, more homeowners exiting forbearance are using a modification – a sign that they have not been able to fully get back on their feet, even if they are working again.”  

After Forbearance Plans End.

December 31, 2020, is the deadline to apply for home loan forbearance relief. As of this date, loan servicers have the green light to reopen or initiate foreclosure proceedings.

In the first quarter of 2021, the first mortgage forbearances will reach 180 days of forbearance. Borrowers must restart their home loan payments plus the due payment period. Let’s hope, by March 2021, COVID-19 is under control and the national economy functions are in a stable manner

Currently, there are over three million home loans in forbearance.  Many homeowners state they may not be able to make their mortgage payments again. The difficulties of the coronavirus have had a strong impact on its economy.  They believe, they will not recover on time to avoid foreclosure.

The pandemic second wave has caused another enclosure implementation in Oregon and across the U.S. to worsen the critical situation. 

Close to three million loans in forbearance sound a few compared with almost 30 million home loans nationwide. But they could represent over 3 trillion dollars in debt by December 31, 2020.  If the federal and local governments do not apply strong measures to help people releasing a stimulus package, we will be walking into the abyss edge.  

Homeowners will face their new reality after December 31, pay mortgage obligations or deal with foreclosure.

What If I Can’t Retake Payments After Forbearance?

This is one of the most frequent questions homeowners do when they contact us.

We hope from the bottom of our heart you are in a good position to pay your mortgage obligation either regular payment and the missed ones.

According to experts, about 30% of the active mortgage forbearance loans may not retake payments at the end of the forbearance period. This is around 870,000 home loans across the U.S. If predictions are correct, by the third quarter of 2021, the real estate market will be saturated in foreclosures.

If you believe that at the end of the forbearance period you are still unable to make your mortgage payments, contact your servicer to determine the best option for your particular case. Banks and lenders don’t want to have a large inventory of homes for sale, they prefer to negotiate rather than foreclose. 

The current coronavirus related situation is not typical. Despite the downgraded economy and because of the low-interest rates, the Portland real estate market has sped up increasing home values up to 15% since February 2020. So, it is easy to conclude, home equity may be the motivation for servicers to foreclosure on delinquent homeowners. Therefore, it wouldn’t be uncommon to see lenders denying mortgage debt settlements to resell and profit from the sale of auctioned properties.

If you can’t make your mortgage payments, selling your property is highly recommended. You can take advantage of your home equity, do not let your servicer to profit from foreclosing and selling your house.

 By avoiding foreclosure you save: 

  • your credit score and years of financial rejections.
  • Family confrontations and a potential divorce.
  • Stress caused for legal matters.

For many people, facing foreclosure impact negatively on their self-confidence. Losing a house is equal to losing a lifetime dream and family safety. Selling your house is a smart decision when there is no other resource to avoid foreclosure.

Why wait until the last minute?

It should not be an option to wait until the last minute to sell your home. On the contrary, that is the way to avoid major inconveniences.

Thinking and acting fast is the right way to solve problems. Selling a property because it is the exit to the fight is different from selling a property under normal conditions. The real estate market requires that a property for sale fits the market sale standard. Among others are, a house in perfect conditions, nice home equity, and issues free.

Issues free in the real estate market language means. No major or minor repairs,  a clean house in all aspects, including the life and the emotions of the house owners. 

Otherwise, a house with a mortgage forbearance, on pre-foreclosure process, or under a foreclosure, doesn’t fit the real estate agent’s requirements. They do not work with property owners that are going through difficult times.

Selling Your Mortgage Forbearance House Fast.

The fastest way to sell your house is by contacting Better Off Home Buyers. We pay the top price according to the market. For many years we have been helping homeowners in the Portland area. Our services cover Oregon and some states across the Country.

We are leaders in assisting desperate homeowners who need to sell their houses right away. We are a family business company, We understand the homeowner’s feelings and emotions when putting ourselves in their shoes. For these reasons, we have developed a comprehensive program to buy houses in a short time.

After a homeowner contacts us and expresses his decision to sell his property. Immediately, we schedule an appointment to meet him, visit his house, and to listen to his needs to provide our best service. We are taking precautions to prevent the virus from spreading and to protect our clients’ health and ours as well.

During the visit, we conduct a house inspection. Base on the homeowners’ information, plus the one gathered on the inspection,  we can present a writing offer.

The homeowner has no obligation to respond to our proposal immediately. He can take the time he needs to accept our offer. As soon as the seller homeowner accepts our writing offer, we will start working on the documents to legalize the buy-sell house transaction.

The Better Off Home Buyers team takes care of the entire process to close the sale transaction in no time. Legal matters, taxes, liens, credits, mortgage balances, etc., related to the property are the experience of our team of experts.

A homeowner receives the check for his house just in seven days. Sometimes our time to close a transaction is 3 or 2 days but sometimes is longer. No, all transactions are equal. It all depends on the transaction itself. Selling your property is always faster with Better Off home Buyers. The median time to sell a house in the normal Portland housing market is 120 days. Please, compare our home buying vs real estate agent’s process.

A regular real estate sale takes 120 days on average, remember that. A house selling transaction with Better Off Home Buyers takes 7 days, on average. The critical difference in time is because we do not depend on lenders for money to buy houses. We Better Off Home Buyers have our own money

If you need to sell your house don’t hesitate to contact us. Please fill the form on this page or dial directly (503) 212-9641.

También hablamos español.


Hi, I'm Scott Dalinger a real estate investor in Portland, Oregon. I focus on helping homeowners and rental property owners out of negative situations by offering cash for their property. I research and write about real estate on my business website.

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