While pandemic restrictions are beginning to lift so are the COVID relief efforts. Across the nation, families are behind on their mortgages and the delinquencies are actually getting worse as the year progresses. This is serious as courts are starting to reopen and are already swamped with filed foreclosures.
The Data About Delinquent Mortgages
According to the American Enterprise Institute of Washington, D.C., research is now showing that homeowners who took out a Federal Housing Administration loan are frequently finding themselves deeper in debt on their mortgages. Bucks County is one of the highest regions that’s on the list of highest mortgage delinquencies. Statistics are showing that 16.7% of Bucks County FHA loans are delinquent, with 11.7% of them seriously delinquent and potentially facing foreclosure.
What Can be Done?
Homeowners in Bucks County may feel like their options are somewhat limited at this point and, unfortunately, they may be right. With the forbearance programs about to end, homeowners will be expected to start paying their mortgages again and need to have a plan in place on how they can pay back what they owe from missed payments. While some people are opting to refinance their loan to lower mortgage payments, this isn’t an option for everyone. Some financial experts are even advising homeowners to consider selling their homes outright if they aren’t able to keep up with their existing mortgage payments.
How Can You Keep Your Home?
While selling your home and downsizing may be a way to keep your credit good while paying off your delinquent mortgage, it can be a crushing idea. For many Bucks County residents, their home is where they have raised their family and the place they feel most comfortable — the idea of uprooting their children and resettling can be heartbreaking. It can also be impossible if you are already in foreclosure. Thankfully, there is another option! Bankruptcy can provide you with the right step to get back on track financially while keeping your home.
Bankruptcy Protects Homeowners
When you file for bankruptcy, you will be given an automatic stay on your home, meaning that you cannot be kicked out – nor can your home be foreclosed upon – until the bankruptcy is finished. Since bankruptcies typically remain in the court system for three to four months, this can give you some much-needed time to catch up on mortgage payments or work out a plan. Bankruptcy will give you the opportunity to lower your monthly bills or in some cases, get rid of them completely. Ultimately, bankruptcy buys you more time and more money to put toward saving your home and financial future.
Many Bucks County residents are struggling to keep up with their mortgage payments – you are not alone. Across the state and the nation, families are struggling to keep their heads above water. A bankruptcy is a respectable and powerful legal way to regain control of your finances while ensuring that you are able to remain within your home. COVID took enough from our country, don’t let it take the home you worked so hard to obtain!