With the Government being so proactive in giving back money to the vast populace hurt by the CoronaVirus shut down . . . it might be easy for homeowners struggling to stay current on mortgage obligations to grasp at every “hand out” or “hand up” offered to them.
Please be aware that most government related loans, i.e., FHA, VA, FNMA, GNMA, etc., are suspending foreclosures temporarily. So there may be less immediate pressure to make immediate decisions on assistance offers. Unfortunately not all lenders are governed by these foreclosure moratoria.
Secondly, many offers may be coming, NOT FROM THE GOVERNMENT, but form the servicer or the lender using their own proprietary assistance package. These offers can be quite complex and may contain “trap doors” and unforeseen consequences.
Marketwatch E-newsletter contains some very helpful advice on evaluating and applying for help: https://www.marketwatch.com/story/are-you-a-homeowner-seeking-forbearance-on-your-mortgage-watch-out-for-these-red-flags-2020-04-10?mod=home-page
Most importantly, please get the protection of an experienced third party representation like our law firm. Don’t be afraid to ask for help in understanding your options and evaluating the options!
Urgency was one of the big factors that led homeowners to waste thousands of dollars with modification scams after the crash of 2008. Don’t be a victim, get reliable legal advice before settling on the best course of action for your recovery from the Covid-19 shut down!