COVID-19 and the New Mortgage Crisis

COVID-19 and the New Mortgage Crisis

The pandemic of 2020 has wreaked havoc on more than just the health of the human race. Many businesses were forced to close the doors for what was thought to be a temporary situation. However, weeks turned into months, and the global economy is still reeling. The United States saw unemployment skyrocket over the last few months, and despite an attempt at recovery, those families impacted by lost wages are still trying to deal with the financial fallout of the pandemic.

Because of the devastating effect unemployment has on a family, it may be a necessary step to call a bankruptcy Maryland lawyer to help figure out a path forward. However, there may be some other relief options available.

The Hardships for Homeowners

When you have lost your job, trying to pay a substantial mortgage can be impossible. Illness, layoffs, car repairs, school bills, or other financial setbacks can also occur in the average individual’s life, making it a struggle to keep up with the monthly house payment. In light of the economic hit the entire nation took during the pandemic, many banks and mortgage lenders took extra steps to provide some financial relief for homeowners. These steps included:

  • Payment forbearance extending up to 12 months
  • Waving penalties or late fees
  • Offering extensions on foreclosure deadlines
  • Creating a repayment plan once forbearance is over that is still manageable

The Hard Road Ahead

As people start to get back to work, many assume that the economy and world will fix itself. This just isn’t the case. Those who are behind on their mortgage payments still have to worry about making ends meet once all the temporary relief options have been extended. Bankruptcy is a last resort, but it is a potential option for trying to salvage your home.

You may not be able to fix your financial struggles overnight, but there is hope for you. Start with your mortgage holder to find out your options when money is tight.