Mortgage Foreclosure Moratorium and Mortgage Forbearance In NC
The mortgage foreclosure moratorium has been extended to December 31st, 2020. This means even if you are delinquent on your mortgage, your lender can not move forward with foreclosure until the moratorium passes. Additionally, forbearance options exist for those having trouble making their payments due to COVID-19.
Mortgage Forbearance Options
As of late October 2020, North Carolina homeowners need to apply for forbearance relief by December 31st, 2020. Mortgage forbearance is available through the Federal CARES Act for homeowners who have financial hardship as a result of COVID-19.
Length Of Mortgage Forbearance Options
Per the CARES Act, the mortgage company must provide forbearance relief for up to 180 days upon request. Borrowers are then allowed to request an extension of the forbearance for up to another 180 days.
Contact Your Mortgage Provider
The smartest thing you can do regarding forbearance and the upcoming expiration of the moratorium is to contact your mortgage service provider. It is by speaking with them that you will discover your options, and prepare for how the deferred payments will be addressed once you come out of forbearance.
Lenders are not permitted to demand the delayed payments be paid in a lump sum. To be clear, the debt does not go away. You will plan with your lender for repayment with an increased monthly mortgage payment spread out over a length of time agreed upon by your mortgage provider.
Bankruptcy After Forbearance
If you come out of forbearance and realize you will be unable to make your increased mortgage payment, you may fall behind on the new payments. If the lender moves forward with a foreclosure proceeding, you can use bankruptcy to save your home by filing a Chapter 13 bankruptcy which allows you to catch up on your missed payments. You may also decide that Chapter 7 is a better option for you depending upon the equity in the home and your goals regarding home ownership.
Speak With A Charlotte Bankruptcy Lawyer Today
Our firm helps homeowners save their homes from foreclosure every day. Call us for guidance and we will help you understand your options before it is too late. You can reach us at 704.749.7747 or click HERE to request a phone consultation.