Foreclosure Stress on American Families

3 min read

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We all want to save money. Many are experiencing financial struggle due to COVID, and are searching for even more ways to make their money stretch further. This pandemic has changed how we operate and function in many ways. Some families, for example, have cut down on their use of household items. Some families have resorted to flushing the toilet less to save money, as 38% of water usage in the average American home is the result of the toilet flushing.

COVID has affected everyone, and many people, especially landlords, have had to adjust their jobs, processes, and the money they need to collect in order to keep their operations running. This, in turn, leads to their renter’s building resentment because they too are struggling throughout this pandemic. In 2018, money spent on tenant improvements rose 13%, according to a JLL study. We will have to see how the pandemic impacted the 2020 and 2021 numbers, but landlord’s spending on tenant improvements has been steadily rising. With more people at home than ever before, trying to save as much money as possible, surely landlord responsibilities and upkeep have skyrocketed.

The number of foreclosures has risen due to the financial hardships caused by COVID and the pandemic. A foreclosure is an undoubtedly difficult time for all parties involved. There are many processes that go into foreclosures, although many have been halted due to COVID. Generally, mortgage lenders start the process of foreclosure after a 90-days delinquency, though no two foreclosures are identical.

Thankfully, a few laws have been passed and programs created that help people find relief during this difficult time. If you are struggling to make ends meet due to COVID, you may be able to temporarily pause your mortgage payments, or reduce the amount you owe.

You may also be able to request forbearance extensions. There is also a COVID forbearance of up to 180 days currently in place. Depending on your current situation, you may be able to request forbearance and more. Make sure to contact your loan servicer or realtor for more information and to request a forbearance, if possible. There are options out there to help with forbearance and financial struggle, so do your research and find out what works best for you.

This article contains general information and does not contain legal advice. Buy It, Rent It, Profit is not a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.