The coronavirus outbreak has caused a lot of uncertainty. Many have lost their jobs or have had their salaries cut, and are wondering how they will survive financially for upcoming weeks, months, and potentially years. As this proceeds, mortgage lenders are preparing for the biggest wave of delinquencies in history, potentially even worse than the 2008 recession that caused a record number of foreclosures.
Borrowers who lost income from the coronavirus — already an astonishing and increasing number, with a record 10 million new jobless claims in the last couple of weeks — can ask to skip payments for as many as 180 days at a time on federally backed mortgages, and avoid penalties and a hit to their credit scores. . Eventually, however, they will have to make these payments to avoid foreclosure.
Some estimate that as many as 30% of Americans with home loans, which is approximately 15 million households, may stop paying if the U.S. economy remains closed through the summer.
If you need help with your mortgage or if you have been foreclosed upon, either due to economic conditions caused by the coronavirus or other reasons, Cotzen Law can help. Michael Cotzen is extremely experienced in all foreclosure issues, has litigated a substantial amount of foreclosure cases and has prevailed in many. In fact, in 2013, he was awarded the Daily Business Review’s Most Effective Lawyer Award for the distressed real estate category for a foreclosure litigation which resulted in his client obtaining a nearly $1,000,000 windfall.
To read more about the current economic situation caused by the coronavirus, feel free to read the Bloomberg.com article here.