Mortgage relief program closed: what happens to you?
Apart from the tragic loss of lives, the Covid-19 pandemic brought along with it an unprecedented amount of hardship, panic, uncertainty, and confusion. For the first time, a record number of 17 million Americans filed for unemployment benefits, as they had lost their jobs and means of livelihood.
Due to this alarming statistic, the U.S government through the CARES act implemented measures to cushion the impact of the Covid-19 pandemic and the devastating loss of lives and jobs that ensued following the compulsory lockdowns. If you happen to be one of the 17 million (and more) Americans dealing with a tough financial situation and you can no longer afford to make payments on your house, then this post is for you.
Covid-19 and your mortgage debt
If you are in bad debt and thus have been unable to make payments on your property, chances are that you already know what a mortgage forbearance agreement is.
You may also know that beginning on the 20th of March, 2020, the global Coronavirus pandemic, the Center for Disease Control (CDC), backed by the CFPB, was forced to issue a residential eviction memorandum.
This memorandum declared that the forceful eviction of tenants from their apartments of residence could pose a public health menace to the increasing reduction of the spread of the COVID-19 virus. This new rule granted immunity to many homeowners who found themselves in situations where they were unable to meet up with mortgage or rent payments.
Although this new mortgage relief program did not mean that you did not eventually have to pay what they owe, it has definitely granted millions of people relief from the burden of their mortgage debts, and now that it is coming to an end, and house payments must officially resume, the future looks quite bleak. You will have to resume making payments on your house, and if you fail to do so, there could be serious consequences.
What happens if I can no longer afford to pay my mortgage debts?
If you can no longer pay your mortgage debt, then a few actions may be taken against you. They include the following.
- Your home may go into foreclosure: If you can not afford to meet up with your mortgage payments, your home lender may take control of your property and sell it in an attempt to recover what they have lent to you. This can potentially have far-reaching consequences and may even cause your credit card company to increase your interest rates.
- Debt collectors may begin to pester you: If your original lender transfers your debt to a collection agency then they may begin to call and harass you in an attempt to get you to pay what you owe. It goes without saying that this can be very uncomfortable.
- You may get sued: If you do not respond to a debt collector’s call, then they may file a lawsuit against you. If the debt collector files a lawsuit that you fail to respond to, a default judgment could be leveled against you and that is NOT good.
- Your wages may be garnished to pay off the debt: The result of a default judgment could be anything from increased penalties to wage garnishment. If your wages are garnished as a result of a default judgment, then a percentage will be taken off from your already lean paycheck and put towards the settlement of your mortgage debt.
- Your credit score will be negatively impacted: Your house going into foreclosure impacts your creditworthiness in the eyes of your lenders. As a consequence of this, you may find it difficult to get other loans, securing another home, or even getting a job.
But hold on, there’s hope!
Why should you sell your house with Tgaz Investments LLC today?
At Tgaz Investments LLC, we want to buy your house and help you get out of that tough financial situation without any fuss, hidden costs, or worry.
We will buy your house as it is and offset any previous debts that you owe. If your home has an underlying mortgage, we will either pay full cash for it or make your due payments for you until it is fully paid off. This way, we grant you instant relief from the burden of your debts!
Choosing to sell your house with Tgaz Investments helps you settle your mortgage loan and avoid a foreclosure that will severely affect your credit score. Once you sell your house to us, you can easily put down payment on another house and secure another mortgage since our process ensures that your credit score remains intact.
What more do you need to hear? Get on the phone with us today at 480-848-7173.