As of now, the national halt on home foreclosures is set to end on July 31. It has had a major impact on the foreclosure rate in Louisiana and across the country. But with the moratorium set to expire soon, will banks rush to start foreclosing on homeowners who are delinquent on their mortgage payments?
You would think so, with about two million homes protected by the moratorium, which is meant to help homeowners who lost their jobs during the pandemic. But maybe not, experts say.
Signs of hope
In a news report, an industry analyst said that many homeowners have used the break from possible foreclosure to get current on their mortgages. The number of mortgages in forbearance has dropped 19 weeks in a row, including as recently as the week of July 12. Also, the delinquency rate was lower in the first quarter of 2021 compared with the same time period in 2020. Though the delinquency rate is still much higher than in 2019, the analyst said she is “cautiously optimistic” that there won’t be a surge of home foreclosures this year.
So there may not be as many homes at risk of foreclosure as you might have expected. But if you are behind on your mortgage, national trends are not important. What matters is if you and your family will get to keep your home.
What to do if you are facing foreclosure
If you are worried that the bank is preparing to foreclose, you may still be able to avoid losing your home. Filing for a Chapter 13 bankruptcy may put a halt to a foreclosure proceedings. You and your attorney can use that pause to seek a solution that works for yourself and the lender.