The Covid-19 pandemic has been devastating to people’s lives and health. It’s also been devastating for people’s work lives and finances. 

That means you, like many people right now, might be having trouble making your mortgage payments. Fortunately, there are steps you can take to avoid foreclosure…an outcome you must avoid at all costs to protect your health and your family’s health. 

While there is a moratorium on foreclosures in New York, the truth is many critics say it’s more like a “strong suggestion” than an order. Don’t rely on the moratorium alone to protect you. 

Fortunately, there are some things you can do to do just that.

Talk to your lenders.

Believe it or not your bank might actually want to work with you right now. 

If you’ve got a federally-backed loan they can’t even foreclose for 60 days after March 18,2020. Of course, time is running out, but federal loans are also offering an 180 day forebearance with the possibility of an 180 day extension beyond that.

If you don’t have a federally-backed loan, talk to your lenders anyway. Many of them have programs in place. Bankrate put up a big list of each of the major bank’s programs at this link.

File bankruptcy.

If your lenders won’t work with you and Covid-19 relief methods like expanded unemployment aren’t helping, then bankruptcy might be your best option.

The courts are still accepting bankruptcy cases and the automatic stay will still keep your bank from foreclosing on you. Your discharge may not happen very fast, but in some cases this can work in your favor. 

Don’t try to do it alone. The CARES act has only made bankruptcy protection more complex. File the wrong form of paperwork or make a mistake and you could lose your home anyway.

Many homeowners will have to file Chapter 13 to keep their property, and there is something close to a 0% success rate for people who attempt to file Chapter 13 without their attorneys.

While you will have to pay some fees to get started in many cases those fees are lower than the mortgage you’re getting behind on. It may be your only option…or a good use of your Covid-19 stimulus check if you have no other options.

Either way, we’re still here for you. Call today to set up your free virtual bankruptcy consultation.

See also:

What Will the CARES Act Mean for Your Bankruptcy?

What is Emergency Bankruptcy?

Protecting Your Goshen, NY Home in Bankruptcy