Your COVID-19 Mortgage Debt Relief and Housing Assistance Options

If you are currently facing a temporary period of financing uncertainty, a COVID-19 mortgage forbearance may be the best option to consider.

 (photo credit: INGIMAGE)
(photo credit: INGIMAGE)
Amidst the ongoing Coronavirus pandemic, many homeowners are beginning to investigate their housing assistance and mortgage debt relief options. The global crisis is sparing very few when it comes to finances and debt repayment. Fortunately, there are several options to help you overcome these pandemic-related financial challenges. As a homeowner, there are plenty of reliable funding options to provide you quick relief. In addition to traditional mortgage financing options, there are even some new temporary programs to address the outbreak of COVID-19. To help you combat instability and uncertainty, read on to learn about your COVID-19 personal loan and debt relief options.

Mortgage Forbearance

If you are currently facing a temporary period of financing uncertainty, a COVID-19 mortgage forbearance may be the best option to consider. A mortgage forbearance is when your lender allows you to suspend or reduce your payments for a temporary period. This way, you can take the time to regain control of your financial footing. However, a forbearance does not mean that your mortgage payments are forgiven. In most cases, you will still be required to repay the balance of your mortgage at the end of the forbearance. Of course, this financing option empowers you to regain financial control without negatively impacting your credit. Surely, mortgage forbearance is an excellent debt relief option to address the financial challenges of COVID-19.

Waived Mortgage Fees

In addition, lenders may agree to waive specific fees associated with your home mortgage. During the Coronavirus pandemic, many mortgage lenders have agreed to waive all late payment fees. If you have already been charged late fees on your monthly payments, you may even be able to contact your lending institution for a refund. By waiving fees, you can continue to make equity payments on your home, while eliminating additional unnecessary expenses. Naturally, this can be a great way to cut your costs and save money during the global pandemic. Absolutely, waived fees are an exceptional form of mortgage relief to leverage during the Coronavirus.

Reverse Mortgages

Next, reverse mortgage debt relief options are an excellent choice for seniors age 62 and older. Simply, reverse mortgages allow you to convert your home equity directly into cash income. This way, you will no longer have to make your monthly mortgage payments. Instead, the reverse mortgage lender will be responsible for making payments to your borrower. According to CEO of All Reverse Mortgage, Michael G. Branson, "these mortgage relief options allow you to remain active, bowling, attending baseball games and doing the things you love but may have given up due to lack of resources – allowing you to age in place with dignity. " Indeed, reverse mortgages are an excellent choice to boost your monthly cash and limit claims against your heirs. Certainly, reverse mortgages are an excellent mortgage debt relief option to combat the unprecedented COVID-19 global pandemic.

Mortgage Repayment Plans

If you are having trouble making your monthly debt obligations, you can restructure your terms through a mortgage repayment plan. Mortgage repayment plans allow you to spread out your past due amount. In many cases, this is accomplished by adding on more mortgage payments over the course of several months. This way, you can effectively bring your mortgage payments up-to-date and resolve any potential financial delinquency. Surely, these re-structuring plans enable you to optimize your amortization schedule, achieve peace of mind, and regain financial confidence. Mortgage repayment plans are the perfect way to get back on track with your home debt obligations.

Mortgage Loan Modification Agreements

Of course, mortgage loan modification agreements are a promising way to lower your monthly payments and avoid home foreclosure. A loan modification plan makes significant changes to the original terms of your negotiated mortgage. Often, this encompasses calculating a new monthly payment, as well as re-defining penalties, interest, and late fees. In other uncommon cases, your lender may even agree to lower the total loan principal. Using this financial plan, you can rebalance your finances and preserve your personal credit ranking. Simultaneously, these modification agreements can halt potential evictions or foreclosures on your property. Surely, mortgage loan modification agreements are a superlative way to obtain COVID-19 housing assistance.

Eliminate Private Mortgage Insurance

Depending on the total equity you have in your home, you may even be able to eliminate private mortgage insurance, or PMI, to lower your monthly payments. Often, only borrowers that have less than twenty percent in their property are required to have private mortgage insurance for two years. Therefore, if you exceed these equity levels, contact your lender about dropping PMI altogether. This way, you can lower your required monthly payments and improve your current financial standing. Absolutely, eliminating private mortgage insurance is a smart strategy to access dependable financial assistance during the COVID-19 pandemic.

If you have a significant amount of equity in your property, investigate home equity loan options. Home equity loans provide you a lump sum of cash using the equity of your home as collateral. Ultimately, the total value of the loan is determined by the value of your home. Using a home equity loan or HELOC, you can obtain a fixed rate, as well a potential tax deduction on the interest you pay. Moreover, you can utilize these loans for virtually any purpose. Of course, home equity loans are a great way to relieve your housing financial stress during the Coronavirus. 

Mortgage Forbearance Extension

Even if you have an existing mortgage forbearance, you may additionally have the right to an extension. In most cases, a traditional mortgage forbearance extension requests provides you up to another 180 days. However, the specific terms will largely depend based on your individual circumstances. To obtain an extension, simply contact your mortgage service provider. They will inform you of the specific documentation you will need to continue your payment deferral. This way, you can continue to pause additional fees, penalties, interest, and your mortgage payments. Most definitely, mortgage forbearance extensions are a dependable form of housing assistance during the unprecedented Coronavirus pandemic.

Home Mortgage Refinancing

Naturally, home mortgage refinancing options are a promising way to regain financial control and access dependable debt assistance. Mortgage refinancing involves replacing your existing debt obligations with a new loan, structured under different terms. Simply, this means that you are trading in your new mortgage for a new one. Using this form of home financing assistance, you can potentially lower your monthly payments, access more predictable costs, and consolidate your debts. Simultaneously, mortgage refinancing empowers you to better manage your credit and strategically use the equity in your home. Certainly, home mortgage refinancing programs is another reliable way to improve your financial standing amidst COVID-19.

To combat financial uncertainty during the COVID pandemic, many homeowners are beginning to investigate their housing assistance, refinancing, and mortgage debt relief options. First and foremost, a mortgage forbearance may be the best option to consider. In addition, lenders may agree to waive specific fees associated with your home mortgage. Next, reverse mortgage debt relief options are an excellent choice for seniors age 62 and older. If you are having trouble making your monthly debt obligations, you can restructure your terms through a mortgage repayment plan.

Of course, mortgage loan modification agreements are a promising way to lower your monthly payments and avoid home foreclosure. If you have a significant amount of equity in your property, investigate home equity loan options. Depending on the total equity you have in your home, you may even be able to eliminate private mortgage insurance, or PMI, to lower your monthly payments. Even if you have an existing mortgage forbearance, you may additionally have the right to an extension. Naturally, home mortgage refinancing options are a promising way to regain financial control and access dependable debt assistance. Follow the points highlighted above to learn about your COVID-19 personal loan and debt relief options.