As the stimulus programs put into place come to an end this year, many homeowners worry about what their futures will hold. Approximately 2.1 million homeowners are still utilizing these mortgage forbearance plans offered following the start of the pandemic, according to figures from the Mortgage Bankers Association, which means that many people are still set to be adversely affected once the moratoriums are lifted.
Even more concerning, nearly 1.8 million families are not in forbearance on their mortgages but are at least 90 days delinquent on their mortgage accounts as of April 2021, according to data from Black Knight.
President Biden has issued an extension of the federal foreclosure moratorium, but those protections are expected to end on June 30, 2021, unless they are extended again. Other foreclosure forbearance programs are set to expire in the fall of 2021.
In a recent Senate hearing, the CEOs of major banks, including Bank of America, Chase, and Wells Fargo, were asked what they intended to do once these mortgage forbearance programs expired, especially considering how many people are still relying on these programs for survival.
Wells Fargo intends to extend the foreclosure protection programs after the current federal ones lapse this summer. Their CEO Charles Scharf reported that Wells Fargo has extended the moratoriums for both foreclosures and evictions until the end of 2021. Wells Fargo also supports the Consumer Financial Protection Bureau’s (CFPB) proposed rule that would prevent lenders from initiating foreclosure proceedings until at least 2022.
The CEO for Bank of America, Brian Moynihan, stated in the hearing that his bank would suspend all foreclosure proceedings through the end of this quarter, which ends when the current federal foreclosure moratorium expires on June 30, 2021. After that date, they will resume foreclosure proceedings. However, Bank of America reported that the number of their customers who are still in forbearance and at risk of delinquency is down 90 percent (90%).
JPMorgan Chase reported similar figures, saying that 90 percent (90%) of their customers had exited the forbearance program, which is why Chase intends to resume foreclosures and evictions at the end of this quarter.
While Wells Fargo was willing to make a statement regarding the recent CFPB proposed rule banning foreclosure proceedings until 2022, both Chase and Bank of America failed to comment on the rule.
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Choosing the right attorney can make the difference between keeping your home or losing it in foreclosure. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure, please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.