Tag: forebearance

Coronavirus, Debt Relief

Mortgage Debt Reaches Record High of $10 Trillion

Posted on by Admin

The American housing market is booming, even though various aspects of the nation’s economy are struggling due to the coronavirus (COVID-19) pandemic.  During the last quarter of 2020, the nation’s mortgage debt load reached a record high of $10 trillion, according to figures from the Federal Reserve Bank of New York. Low interest rates for home mortgages is a big catalyst for this boom in the housing market.  

Consumers are taking advantage of record low interest rates when making home purchases. At the start of November 2020, mortgage rates reached a 12th record low in 2020.  As a result, mortgage debt jumped by $85 billion between July and September 2020, reaching a high of $9.86 trillion.  

Foreclosure Defense, Foreclosures

Tax Implications Homeowners Facing Foreclosure Encounter from the CARES Act

Posted on by Admin

The coronavirus (COVID-19) pandemic has thrown countless Americans into a financial tailspin. Many consumers were pushed out of jobs and put into the position where they are not able to pay the most basic of living expenses, including mortgage payments, to stay in their homes. As the pandemic continues, these homeowners are now put in a terrifying position, facing the real possibility that they could lose their homes.

At the start of the pandemic, lawmakers worked hard to try to keep Americans from facing this possibility by passing the CARES Act. One major part of this stimulus package was the ability for borrowers who carried federally backed mortgages to request a forbearance for up to 180 days on their loan obligations. The hope was this measure would give distressed homeowners breathing room and a chance to stay in their homes during this time of financial difficulty. If needed, borrowers could then request an additional 180 days of relief.