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With new year on the horizon, foreclosure is a primary concern

On Behalf of | Dec 17, 2020 | Foreclosures

In Florida and across the United States, the ongoing health challenges have impacted people in myriad ways. Job loss, medical expenses, depleted savings, the inability to pay bills – all are continuing issues. People who have fallen behind on their mortgages have gotten limited assistance from the government and are confronted with the real possibility of foreclosure. For those dealing with concerns about their financial situation and are worried about foreclosure and repossession, there are options available including bankruptcy.

Financial challenges expected to come to a head in 2021

The unexpected series of events that have accompanied the pandemic are impacting people as they try to make ends meet. A recent survey says that nearly 6 million people across the U.S. are concerned about being evicted or having their home foreclosed upon soon. Half of those who are behind in payments in Florida, Nevada and Arkansas think they may be evicted at the start of the new year.

Although U.S. legislators took steps to protect struggling homeowners as part of the CARES Act, that law expires in March and the mortgage payments “pause” will no longer protect those who are behind on mortgage payments. Those who are renting could be confronted with eviction by the end of the year. This combines with people whose unemployment benefits may be set to run out in the last week of December. As Congress debates extensions on these programs and another stimulus, people’s fears increase and solutions to their financial woes are sought.

Bankruptcy and other strategies can help those facing foreclosure

Homeowners should be aware of the foreclosure process and be proactive in protecting themselves. This is especially true now when a major spike in foreclosures could be on the horizon. In Florida, people have 20 days to respond to a foreclosure notice. There are alternatives such as lodging a foreclosure defense, filing for Chapter 7 bankruptcy, or filing for Chapter 13 bankruptcy. People who are experiencing financial turmoil for any reason must be cognizant of what is available to protect themselves. Having legal assistance from a firm that handles foreclosure and repossession – as well as bankruptcy – can be helpful from the start.

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