Possible Fallout from Mortgage Forbearance
During the COVID-19 pandemic, many people put off debt due to job loss and other financial challenges. Many homeowners turned to mortgage forbearance for much-needed financial relief. Now, the forbearance period is beginning to end, and homeowners may need a new form of relief. In an interview with WSAV News 3, Attorney Mark Bandy explains how bankruptcy may provide post-pandemic financial peace of mind to homeowners with a looming mortgage balance.
The biggest challenge for homeowners who chose forbearance will be the lump sum caveat found in the fine print of most private forbearance agreements.
As Attorney Mark Bandy explains to reporter Edward Moody:
“The fine print on most private forbearance agreements says borrowers have to pay back the lump sum of the payments they deferred once the forbearance period is over.”
Attorney Mark Bandy also explains the motivators for bankruptcy, which include:
- Medical expenses,
- Job loss, and
- Divorce.
“We’ve effectively been through a gigantic medical event as a nation,” Attorney Mark Bandy says, so it only makes sense that some people will seek relief under Chapter 7 or Chapter 13 bankruptcy.
For homeowners, Chapter 13 may be a better option, but the type of bankruptcy someone files will depend largely on the type of debt they have.
To watch the whole story from WSAV News 3 and access Attorney Mark Bandy’s whole interview, please click here .
To speak to the Law Offices of Mark A. Bandy, PC about your specific situation during a free consultation, please call the Law Offices of Mark A. Bandy, PC at (912) 331-4501 or send us a message online today.
We have been helping good people through bad times in Savannah for more than 20 years, and we look forward to helping you, too.