Our Federal Government in response to job losses stemming from the COVID-19 outbreak has provided consumers with a lifeline in the form of relief from foreclosure or eviction. That moratorium was designed to expire at the point where the economy has begun to recover. Hold on to your hats, the moratorium on forbearance and foreclosure has just been extended to June.

As to this writing, it’s estimated by industry sources that 5-6% of mortgages are in some form or another of delinquency while another 5-6% are in forbearance. The extension of forbearance must be requested by the borrower, it’s not automatic as proposed. The future of these delinquent loans is in doubt.

Only a certain number of borrowers will be able to recover. The balance of which will be thrown into foreclosure. For most consumers, foreclosure is a traumatic experience, filled with uncertainty and dreadful thoughts. The key to any fear is knowledge. We hope we can provide the knowledge to consumers so they can determine the best course of action moving forward. This extension by the Federal Government in my opinion further “kicks the can” down the road for financial institutions putting more pressure on them in the future.

There will be a rush of foreclosures later this year, we will be here to help those seeking a solution.