CFPB Foreclosure Protections Are Ending, Do I Have Other Options?

Man Working on Bankruptcy Documents to Prevent Foreclosure

When the COVID 19 Pandemic struck, government officials provided help. They created foreclosure moratoriums and mortgage relief programs to help people who were financially struggling. Now, as 2022 looms, many of these moratoriums and programs are ending. What can homeowners who are still struggling do?

The bankruptcy attorneys at Troppito Miller Griffin, LLC want to help families through tough financial times. Therefore, we want to explore the options available to homeowners in Missouri and Kansas.

Mortgage Protections Are Expiring Again

Months ago, eviction moratoriums in Kansas and Missouri ended. These forbearances were set up to protect individuals facing financial hardship during the pandemic. As those protections ended, the number of foreclosures spiked. The Consumer Financial Protection Bureau (CFPB) stepped in with new mortgage relief programs to help people keep their homes. Many of these protections are due to expire on December 31, 2021.

Homeowners who are still struggling due to the pandemic may face serious problems soon. Selling your home or foreclosure may seem like the only options, but there may be another solution.

What Options Do Homeowners Have?

  1. Contact your mortgage servicer. Just because CFPB mortgage relief programs are ending, does not mean programs at your loan servicer are. Many lenders have programs to help homeowners avoid foreclosure. If you are still facing financial problems in 2022, talk to your mortgage provider. Remember, these programs can take a while to get approval. So, reach out as soon as possible and do not wait until you get a foreclosure sale notice. By that point, it could be too late.
  2. Homeowner Assistance Fund. Each state is developing plans to help distribute almost $10 billion in relief funds. These funds come from the American Rescue Plan to prevent mortgage defaults, foreclosures and the loss of utilities. However, many of these programs are still waiting for approval from the US Department of the Treasury. We also do not know how much demand there will be, or how long funding will last. Programs in both Kansas and Missouri are still waiting for approval.
  3. File for Bankruptcy. When you file for bankruptcy, an automatic stay begins. This stay stops all collection actions, and this includes foreclosure. Bankruptcy will also help you settle your debt, so you can restart your finances. Given the right circumstances, filing bankruptcy can also be the fastest option you have to stop a foreclosure. Talk to our trusted Kansas City bankruptcy attorney to find out which type of bankruptcy filing will work best for you.

Do Not Wait to Act

As mortgage relief programs end, Americans will face increased foreclosure risks. This may cause unforeseen backlogs, which could cause delays and cost you your home. As we mentioned before, waiting until you get a foreclosure sale notice in the mail may also keep you from acting in time. Call our bankruptcy attorney at (816) 320-6527 and discuss your financial options to avoid foreclosure. We want to help your family keep your home.

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