The forbearance provisions of the coronavirus rescue package signed into law during the early stages of the pandemic does not appear to have lessened the financial woes of many homeowners. According to available data, the number of homeowners who are four months in arrears in paying their mortgages is at its highest level since 1999.
Forbearance does not forgive the payments
Some of the homeowners who availed themselves of the forbearance option for government-insured loans under the rescue package now find themselves seriously delinquent on their mortgage obligation. They also face the financial burden of deferred payments coming due at the end of the forgiveness period.
What do homeowners need to get out from under their financial burden?
Another stimulus package from the federal government may offer temporary relief for some homeowners, but more will be needed to counter the effects of an economy that is still reeling from COVID-19. More money from the government may only be a stop-gap measure for homeowners who are out of work. Until an economic recovery allows businesses to begin hiring and reduce record-level unemployment rates, homeowners may continue to struggle to meet their financial obligations.
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