Many American Homeowners Now Seeking Loan Modifications During the Pandemic

As Americans continue to suffer economically, many homeowners are looking for loan modifications during the pandemic. All major lenders have reported an increase in delinquencies and requests for relief. The good news is that lenders are responding by reactivating loan modification programs. Most mortgage banks had to deploy mitigation strategies and relief programs during the mortgage crisis of 2008. Well, the pandemic is forcing banks to consider the same strategies. As a result, loan modification and reinstatement programs are emerging as the solution of choice.

Here is a list of qualifying hardships from the Making Home Affordable Program. That list of hardships remains today. Sadly, millions of American homeowners have suffered one or more of these hardships as a result of the pandemic. Of course, the obvious hardship so many Americans are experiencing is a loss of income. Loan modifications are for people who fall behind on their mortgage by no fault of their own. Well, a pandemic is a pretty darn good reason, and this pandemic has caused hardship in every category.

How Mortgage Lenders See the Pandemic

In most cases, lenders would prefer to avoid a foreclosure. The process is costly and could potentially harm their reputation at a time like this. If you had a loss of income, but can still afford some portion of your mortgage, a loan modification may be the answer. If you lost income, but expect it to return to normal in the near future, a reinstatement might be the right choice for you. Reinstatement programs can just take the past due payments and add them to the end of your loan. That gives you a fresh start to resume your regular payments. Sometimes, the right solution is a combination of programs, and many are lender specific.

Regardless, mortgage lenders have no choice but to make programs available to homeowners affected by the pandemic. If not, there will be a massive wave of very costly foreclosures that occur unjustly. These days, there is no telling what that could lead to.

However, a quick word of caution. Do not think that an investor will not foreclose if there is a quick profit to be made. Lenders are notorious for these types of practices, and you have rights. Once you have defaulted on your mortgage, it is best to consult an attorney. An experienced foreclosure defense and loan modification attorney is in the best position to protect your interests.

Foreclosure Defense and Loan Modification Attorneys

It is for this reason that we provide direct access to foreclosure defense and loan modification attorneys, nationwide. These attorneys have decades of experience and have helped thousands of homeowners with foreclosure defense and loan modification. They can stop the foreclosure process and negotiate terms that allow you to stay in your home with affordable payments. They also offer affordable, customized payment plans for their clients. If you would like to learn more about your options, or simply have questions, call us for a free consultation.