Financial Strain Amidst Current Challenges: Uncertainties Surrounding Foreclosures and Economic Recovery
The recent climate is extremely stressful for most Americans for several reasons; many citizens do not have a job, remain locked in their homes and struggle with the costs of living with limited or no income.
It puts most families in a dark position where they have to consider the future of their finances and their homes. However, Congress did take steps to protect Americans from foreclosure for a specific period while the world returns to a normal state.
But as the deadline approaches, many citizens question whether politicians will continue to stop foreclosures or if we need to anticipate a flood of foreclosures on the horizon.
Bracing for the flood
According to DS News, there are predictions that over 200,000 homes next spring will land between the initial-foreclosure-notice phase and final resale by the lenders. There is also a possibility of over 500,000 foreclosures if congress cannot continue a moratorium on residential properties.
It puts many politicians in a tough position because extending the moratorium could lead to benefits and horrible consequences. For example, there are huge benefits for their voters as many Americans could stay in their homes and find another avenue to make up their mortgage costs. However, there is research to show that long-term moratoriums have significant damage to the overall economy.
The increase won’t be isolated to specific states either. Foreclosures will increase across the United States, with some regions predicted to almost double in foreclosures by spring 2021.
It puts many Americans in a position where they need to brace for the worst-case scenario. Luckily, bankruptcy can help certain families keep their homes while reducing their debt. But you should evaluate all your options before filing.