Worried about the looming foreclosure moratorium? As we usher in the new year of 2021 with celebrations, it’s essential to recognize that for those who have faced financial hardship due to the pandemic and are in forbearance, their Fannie Mae or Freddie Mac relief programs will soon come to an end. With the uncertainty of financial recovery on the horizon, it becomes crucial to take proactive steps to secure your home on your terms. To navigate this challenging situation effectively, gaining a deep understanding of your available options is key. This knowledge will empower you to direct your efforts toward mitigating potential losses on your property and evading the far-reaching consequences of foreclosure.
Choosing to collaborate with a seasoned professional buyer offers you a lifeline during these trying times. Such a partnership guarantees a defined closing date, eliminating the stress of dealing with inexperienced cash buyers who often back out of deals at the eleventh hour or fail to secure financing, causing significant delays in your property sale. Without taking the necessary measures to prevent foreclosure proceedings, let’s delve into what the end of the foreclosure moratorium might signify for homeowners in Westchester County, NY.
Dealing With Foreclosure in Westchester County NY
Now is not the time to bury your head in the sand. Homeowners are on the brink of receiving notifications from their lenders, and it’s essential to be proactive. Typically, lenders provide a window for homeowners to bring their mortgage payments up to date. What’s important to note is that the Joint Economic Committee of Congress has determined that the average foreclosure carries a staggering cost of nearly $80,000 in total. This figure encompasses not only the lender’s losses but also an approximate burden of $7,200 on the homeowner.
Depending on your specific circumstances, it may become necessary to seek legal counsel. Legal fees for assistance in foreclosure proceedings can vary significantly. Many attorneys offer flat fee arrangements, with costs ranging from $1,500 to $4,000. Additionally, there may be supplementary charges for itemized expenses, such as court fees, postage, and travel expenses.
The end of the foreclosure moratorium could spell further financial strain for homeowners already grappling with challenges in Westchester County. It is crucial to remain proactive and well-informed about your options during these trying times.
Financial Loss
As the foreclosure moratorium draws to a close, it’s important to understand that the past-due mortgage payments will need to be added to the existing loan. However, there will be no leniency with regard to the monthly payments that follow. A home represents one of the most significant investments in our lives, and over time, equity accumulates. Unless unforeseen, life-changing circumstances such as returning to work or securing new employment occur, the end of the foreclosure moratorium could spell the loss of this hard-earned equity for homeowners in Westchester County, NY.
In the aftermath of a foreclosure, you may still be left with a deficiency—this refers to the amount by which the property’s sale price falls short of covering the remaining mortgage debt. This additional financial burden can compound the challenges you face.
Moreover, a foreclosure will leave a lasting mark on your credit history, remaining on your credit report for a period of 7 years. This, in turn, can result in higher interest rates for any credit you qualify for, elevating the overall cost of living. In certain cases, your job prospects may also be negatively impacted by your tarnished credit history, emphasizing the significance of taking proactive steps to address the implications of the foreclosure moratorium coming to an end.
Moving Expenses
The looming end of the foreclosure moratorium could translate into the distressing prospect of eviction for homeowners residing in Westchester County. As the foreclosure process progresses towards its final stages, the new owner gradually assumes possession of the property. Subsequently, an eviction process is set in motion, culminating in homeowners receiving notice of the impending possession date, ultimately requiring them to vacate the premises. This transition period can span anywhere from three to 30 days, adding to the uncertainty and stress of the situation.
For homeowners facing eviction, the financial burden extends to the expenses associated with relocating as renters. This entails securing funds for deposits, utilities, and all the costs involved in starting anew in a different residence. If a resolution to your financial predicament remains elusive, it becomes increasingly crucial not to delay. One viable option to consider is selling your house promptly.
Moreover, being thrust into the rental market post-eviction could entail higher rent payments and potential challenges in being accepted as a tenant. The emotional toll of losing your home to foreclosure and the subsequent eviction process is undeniable, compounded by the adverse financial ramifications.
Remember, if you don’t take charge of your life’s course, others may dictate it for you. The time to take action is now.
The conclusion of the foreclosure moratorium carries the specter of enduring severe financial losses, witnessing the erosion of your creditworthiness, shouldering the financial burden of an unplanned relocation, and accumulating additional debt for homeowners in Westchester County. Whether you choose the traditional route of listing your property with a real estate agent or opt for an independent sale, there is no guarantee of a closing date, or even if the home will sell at all.
When weighing both the immediate and long-term costs, selling your property now, even at a rate lower than the traditional market, can offer the assurance of a closing date and safeguard your future. With the arrival of January 1, 2021, your monthly mortgage payments will once again be due, and banks will commence foreclosure proceedings. Selling your property to Astor Lane Homes offers a lifeline, preventing the loss of your home and shielding you from the concealed expenses of foreclosure.
Should you have any questions or concerns, we are here to provide answers and guidance. To discover more about our services, what we can provide, and the potential implications of the foreclosure moratorium for your situation, please don’t hesitate to reach out to us via message or give us a call today at (914) 266-0055. Your future is in your hands.