We Buy Houses in Cornelius, Oregon
“They went out of their way to make sure I was happy with the deal and they assisted in any way they could to make the process easier…”
The internet and social media platforms are full of information regarding the help offered by congress through the CARES act to those homeowners that the COVID-19 outbreak has impacted. Homeowners with mortgages backed by any federal agency can request forbearance relief, which may include a deferred payment plan and a home loan modification.
The CARES Act, signed in March 2020, allowed homeowners with a federally insured mortgage to apply for a 180-day forbearance plan. The law also allows you to extend the program for another 180 days if necessary.
The CARES Act “Suggests” lenders and debtors should get on negotiations to set a repayment plan for the forbearance period. The Act does not direct banks on how they should address the repayments plans. In other words, Banks and lenders are free to set the forbearance repayment guidelines on their own.
Homeowners with mortgages not backed by the federal government may still qualify for COVID-19 mortgage forbearance under voluntary relief programs put in place by lenders. If your loan falls under this category and you’re interested in mortgage forbearance, contact your lender to see what options they’re offering.
Unfortunately, the legislation does not issue any protection to home loans not backed by federal agencies.
Repayment for the forbearance period.
Forbearance repayment plans under normal circumstances typically are handled in one of these three ways:
- Reinstatement: At the end of the forbearance period, you should pay a lump sum, covering the total amount by which your payments were reduced or suspended plus interest and fees.
- A Repayment plan: The number of repayment installments is negotiable and can depend in part on your ability to make payments, but it’s usually no greater than 12 months.
- A Loan Modification: Under a loan modification, any amount you were excused from paying during forbearance is added back into the total you owe and factored into the new payment structure.
At our Better Off Home Buyers offices, we see an increase in phone calls from Cornelius, Oregon. Many homeowners express disappointment with banks and lenders because they feel they were wrong informed when they requested a forbearance plan.
“A report published Tuesday found that banks are handling the question of how borrowers should compensate for their missed payments in myriad ways. Some homeowners are having those payments tacked onto the end of their loan terms, while others are being offered loan modification. And still, others are being told that they owe the money in an upfront lump-sum payment that may be unaffordable.” americanbanker.com
Homeowners With Conventional Loans
A conventional loan is a home loan that is not offered or secured by a government entity. It is available through or guaranteed by a private lender. Conventional mortgages often meet the down payment and income requirements set by Fannie Mae and Freddie Mac, and they often conform to the loan limits set by the Federal Housing Finance Administration (FHFA).
However, Conventional loans aren’t backed by a government agency, but they follow some government guidelines. Conventional lenders are free to enforce stricter requirements than the guidelines set by the FHFA, Fannie, and Freddie Mac.
If you have a forbearance plan on a conventional mortgage, your mortgage’s repayment will look different than the federally backed loan repayment plans. Without a federal mandate in the CARES Act, conventional mortgages differ in repayment, and each lender’s procedures look different.
The owners claim that the banks did not disclose the payment terms and other conditions at forbearance granted, “There was nothing in writing that specified a form of reimbursement.” They said.
Suppose you are under a forbearance plan that is about to end. Perhaps, you are initiating a payment plan, but things don’t go ok and you think that selling the property would represent a solution for your financial problems. Please, read as follows the Better Off Home Buyers home buying process.
Of all outstanding single-family mortgages, roughly 70% are owned or backed by a federal agency. About 30% approximately 14.5 million U.S. home loans are privately owned and not supported by any federal agency. Just under 11% of these privately-held mortgages remain in some type of forbearance or deferment program, a higher level than that of Americans with government-backed loans.
Federally financed homeowners can obtain forbearance under standard terms dictated by the guarantor. However, conventional loan borrowers receive forbearance with varying durations, qualification requirements, and repayment options. This means that two borrowers with similar circumstances may get different treatment because different entities own their loans.
Our Home Buying Process.
Knowing Your Property
Contact us. We will gather some basic information about your timeline to sell.
Overview of Property: We will ask for a brief overview of your house, and if possible, although not necessary, we will set up a site visit.
A no-obligation offer.
A no-obligation offer: We will either make you an offer on the spot, or the by the following day at the latest.
Cash in your hands in as little as 7 days.
Our Better Off Home Buyers team includes Lawyers, Accountants, and Real estate professionals to provide an excellent service to our clients. We work with a well-known local title company to close the transaction in a short time. Because we have the capital to buy properties, the closing can be 7 days in many cases.
Our team includes Lawyers, Accountants, and Real estate professionals to provide an excellent service to our clients. We work with a well-known local title company to close the transaction in a short time. Because we have the capital to buy properties, the closing can be 7 days in many cases.
- No-stress. The selling process of your house will be quick, transparent, and easy to understand. You don’t need to schedule buyers’ visits to your home. Either, waiting months for someone to purchase your property. You will have professional assistance 24/7.
“A foreclosure is a legal process by which a lender attempts to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property. Typically, default is triggered when a borrower misses a specific number of monthly payments, but it can also happen when the borrower fails to meet other terms in the mortgage document.” Investopedia
More Homes Into Foreclosure In 2022
Governor Brown announced on August 16 that she had extended Oregon’s residential mortgage moratorium until December 31, 2021. This moratorium prevents homeowners from losing their homes throughout foreclosure if they have lost income and cannot pay their mortgage during the COVID-19 pandemic.
A third-quarter 2021 analysis predicts that close to 300,000 homes in Oregon will be in a foreclosure process, with near 7,900 houses, or 3.7 percent, inhabited as so-called ‘zombie foreclosures.
Despite the increase, the 7,900 zombie foreclosure properties continue to represent just a tiny portion – one of every 12,500 homes – of the nation’s stock of 99.4 million residential properties.
The increase in vacant properties makes the federal government shield the housing market from an economic downturn stemming from the COVID-19.
“Abandoned homes in foreclosure remain little more than a spot on the radar screen in most parts of the United States, posing few, if any, problems from neighborhood to neighborhood.
The latest numbers do throw a small potential red flag into the air, given the increase in the percentage of zombie foreclosures,” said Todd Teta, chief product officer with ATTOM Data Solutions.
Among the government’s key measures, the ban on foreclosures is a temporary prohibition against lender’s actions on government-backed mortgages. The ban will expire on December 31, 2021, and will affect about 70 percent of home loans in Oregon.
Without the government’s regulation to supervise private lenders or establish a standard procedure to approach the defaulting mortgage problem. The coming 2022 will be the scenery of uncounted foreclosures, abandoned homes (Zombie foreclosure), and an apartment rental boom.
Selling on time is better than let your Cornelius property go into foreclosure. Contact Better Off Home Buyers. Let us walk you through our home buying process.