The last year and a half have been undeniably rough for a lot of folks. Experts expect foreclosures to start rising as 2021 draws to a close.
There are already some troubling signs that their expectations are true: While foreclosure filings were down 4% in July from the previous month, they’re still a whopping 40% higher than they were this time last year.
Who is likely to be hit the hardest?
Experts say that they anticipate foreclosures to be highest on properties that are already abandoned and those already in default on their mortgages before the government’s moratorium on such actions expired in July.
What’s being done to help homeowners in distress?
One Florida congressperson is doing something to help homeowners facing foreclosure. Rep. Val Demings, who represents Orlando, has already introduced a bill that — if it becomes law — would temporarily halt foreclosures and evictions from homes with federally backed mortgages.
Called the Federal Disaster Housing Stability Act of 2021, this would only apply in areas where federal disasters have been held. While not complete relief, it would offer some stability in places that have been seriously affected by hurricanes, flooding and other major disasters that are beyond homeowners’ control.
What else can you do?
Any relief measures the government takes will be temporary, at best, so it’s wise to look into your other foreclosure defense options. If you’re at risk of losing your home, it may be possible to negotiate new terms with your lender or a forbearance period that will help you get back on your feet. It may be wise to seek legal guidance.