What the End of the Foreclosure Moratorium May Mean For Homeowners in Virginia

What the End of the Foreclosure Moratorium May Mean For Homeowners in Virginia

We buy houses in Virginia. We are your local Virginia home buyers, and we offer cash for houses in Virginia. We often meet homeowners facing incredibly unique and difficult situations. While many will soon be celebrating the new year and holiday festivities, there are many who are in forbearance or facing foreclosure due to loss of income from COVID-19. With all the uncertainty revolving what Fannie Mae and Freddie Mac will do, an immediate response to help your situation may be the most reasonable response.

Educating yourself on your options can help you to focus your efforts towards recovering what you can from the property and avoiding the long-reaching consequences of foreclosure. By working with a professional buyer you can rely on, you will have a guaranteed closing date and will not have to worry about dealing with inexperienced cash buyers, who are often backing out of deals at the last minute or cannot qualify for financing after holding up your sale. Without doing what it takes to ward off the proceedings, here is what the end of the foreclosure moratorium may mean for homeowners in Virginia.

Dealing With Foreclosure in Virginia 

This is not the time to stick your head in the sand! Homeowners will begin to receive notifications from their lenders. Usually, there is a time period allowed for the homeowner to make the mortgage payments current. The Joint Economic Committee of Congress determined the average foreclosure has a cost of nearly $80,000 in total, including the lender’s loss and around $7,200 to the homeowner. Depending on the circumstances, you may need an attorney. Fees for legal assistance in foreclosure proceedings vary, many attorneys offer a flat fee arrangement, ranging from $1,500 up to $4,000. There may also be additional charges for itemized expenses such as court costs, postage or even travel. The end of the foreclosure moratorium may mean further indebtedness for already strained homeowners in Virginia.

Financial Loss

At the end of the foreclosure moratorium, the payments on the mortgage that are past due will have been added into the loan, however, there will be no further acceptable delay on the monthly payments that follow. Our home is usually the largest investment we make and over time our equity is built. Without the intervention of life-changing circumstances, such as returning to work or new employment, the end of the foreclosure moratorium may mean loss of the equity in the property for homeowners in Virginia. You may also still owe any difference in the amount the property sold for against your remaining debt on the mortgage to your lender, known as a deficiency, after the foreclosure. A foreclosure will remain on your credit report for a period of 7 years. Higher interest rates will add to your costs of living on any credit you do qualify for, due to the foreclosure. In some cases, your chances at a job may be jeopardized by your credit history as well.

Moving Expenses in Virginia

The end of the foreclosure moratorium may mean eviction for homeowners in Virginia. As the process moves forward, leading to the final step in the foreclosure process, the new owner takes possession. An eviction process will be carried out, eventually leading to the homeowners receiving notice of when the possession will take place, and the property must be vacated. This time period can vary, from three to 30 days. Then you will be faced with the expenses of moving as a renter. you will need funds for deposits and utilities and everything involved in starting over in a new residence. Do not delay, if there is no resolution to your financial situation in sight, you may want to consider selling your house now. Likewise, you may pay more for rent or may even experience issues in being accepted as a tenant. Experiencing the loss of your home in foreclosure and the eventual eviction that follows is emotionally draining in addition to the negative financial aspect.  If you don’t plan your life, others will do it for you, so the time to act is now! 

Virginia‘s Foreclosure Moratorium

The end of the foreclosure moratorium may mean enduring painful financial loss, watching your credit be destroyed, paying for an unsought relocation, and additional debt for homeowners in Virginia. Through either a traditional listing with a real estate agent or selling on your own, there is no guaranteed closing date or even if the home will sell. When you consider both the immediate and long term costs, it may be worth selling now at a lower rate than the traditional market, to guarantee your closing date and protect your future. On January 1, 2021, your monthly mortgage payments will be due again and banks will start foreclosing.

We Buy Virginia Houses

We buy houses in Virginia. If you think you need to sell your house in Virginia fast, then you may need an investor. The House Guys are local homebuyers in Virginia and we’re helping local homeowners solve their housing problems quick and hassle-free. If your house in Virginia qualifies, we can make you a quick and fair cash offer. 

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