Tag: estate

An Overview of Filial Responsibility Laws

Father in a wheelchair and son outsideTaking care of aging parents is something you may need to plan for, especially if you think one or both of them might need long-term care. One thing you may not know is that some states have filial responsibility laws that require adult children to help financially with the cost of nursing home care. Whether these laws affect you or not depends largely on where you live and what financial resources your parents have to cover long-term care. But it’s important to understand how these laws work to avoid any financial surprises as your parents age.

Filial Responsibility Laws, Definition

Filial responsibility laws are legal rules that hold adult children financially responsible for their parents’ medical care when parents are unable to pay. More than half of U.S. states have some type of filial support or responsibility law, including:

  • Alaska
  • Arkansas
  • California
  • Connecticut
  • Delaware
  • Georgia
  • Indiana
  • Iowa
  • Kentucky
  • Louisiana
  • Massachusetts
  • Mississippi
  • Montana
  • Nevada
  • New Jersey
  • North Carolina
  • North Dakota
  • Ohio
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Dakota
  • Tennessee
  • Utah
  • Vermont
  • Virginia
  • West Virginia

Puerto Rico also has laws regarding filial responsibility. Broadly speaking, these laws require adult children to help pay for things like medical care and basic needs when a parent is impoverished. But the way the laws are applied can vary from state to state. For example, some states may include mental health treatment as a situation requiring children to pay while others don’t. States can also place time limitations on how long adult children are required to pay.

When Do Filial Responsibility Laws Apply?

If you live in a state that has filial responsibility guidelines on the books, it’s important to understand when those laws can be applied.

Generally, you may have an obligation to pay for your parents’ medical care if all of the following apply:

  • One or both parents are receiving some type of state government-sponsored financial support to help pay for food, housing, utilities or other expenses
  • One or both parents has nursing home bills they can’t pay
  • One or both parents qualifies for indigent status, which means their Social Security benefits don’t cover their expenses
  • One or both parents are ineligible for Medicaid help to pay for long-term care
  • It’s established that you have the ability to pay outstanding nursing home bills

If you live in a state with filial responsibility laws, it’s possible that the nursing home providing care to one or both of your parents could come after you personally to collect on any outstanding bills owed. This means the nursing home would have to sue you in small claims court.

If the lawsuit is successful, the nursing home would then be able to take additional collection actions against you. That might include garnishing your wages or levying your bank account, depending on what your state allows.

Whether you’re actually subject to any of those actions or a lawsuit depends on whether the nursing home or care provider believes that you have the ability to pay. If you’re sued by a nursing home, you may be able to avoid further collection actions if you can show that because of your income, liabilities or other circumstances, you’re not able to pay any medical bills owed by your parents.

Filial Responsibility Laws and Medicaid

Senior care living areaWhile Medicare does not pay for long-term care expenses, Medicaid can. Medicaid eligibility guidelines vary from state to state but generally, aging seniors need to be income- and asset-eligible to qualify. If your aging parents are able to get Medicaid to help pay for long-term care, then filial responsibility laws don’t apply. Instead, Medicaid can paid for long-term care costs.

There is, however, a potential wrinkle to be aware of. Medicaid estate recovery laws allow nursing homes and long-term care providers to seek reimbursement for long-term care costs from the deceased person’s estate. Specifically, if your parents transferred assets to a trust then your state’s Medicaid program may be able to recover funds from the trust.

You wouldn’t have to worry about being sued personally in that case. But if your parents used a trust as part of their estate plan, any Medicaid recovery efforts could shrink the pool of assets you stand to inherit.

Talk to Your Parents About Estate Planning and Long-Term Care

If you live in a state with filial responsibility laws (or even if you don’t), it’s important to have an ongoing conversation with your parents about estate planning, end-of-life care and where that fits into your financial plans.

You can start with the basics and discuss what kind of care your parents expect to need and who they want to provide it. For example, they may want or expect you to care for them in your home or be allowed to stay in their own home with the help of a nursing aide. If that’s the case, it’s important to discuss whether that’s feasible financially.

If you believe that a nursing home stay is likely then you may want to talk to them about purchasing long-term care insurance or a hybrid life insurance policy that includes long-term care coverage. A hybrid policy can help pay for long-term care if needed and leave a death benefit for you (and your siblings if you have them) if your parents don’t require nursing home care.

Speaking of siblings, you may also want to discuss shared responsibility for caregiving, financial or otherwise, if you have brothers and sisters. This can help prevent resentment from arising later if one of you is taking on more of the financial or emotional burdens associated with caring for aging parents.

If your parents took out a reverse mortgage to provide income in retirement, it’s also important to discuss the implications of moving to a nursing home. Reverse mortgages generally must be repaid in full if long-term care means moving out of the home. In that instance, you may have to sell the home to repay a reverse mortgage.

The Bottom Line

elderly woman in a wheelchair outsideFilial responsibility laws could hold you responsible for your parents’ medical bills if they’re unable to pay what’s owed. If you live in a state that has these laws, it’s important to know when you may be subject to them. Helping your parents to plan ahead financially for long-term needs can help reduce the possibility of you being on the hook for nursing care costs unexpectedly.

Tips for Estate Planning

  • Consider talking to a financial advisor about what filial responsibility laws could mean for you if you live in a state that enforces them. If you don’t have a financial advisor yet, finding one doesn’t have to be a complicated process. SmartAsset’s financial advisor matching tool can help you connect, in just minutes, with professional advisors in your local area. If you’re ready, get started now.
  • When discussing financial planning with your parents, there are other things you may want to cover in addition to long-term care. For example, you might ask whether they’ve drafted a will yet or if they think they may need a trust for Medicaid planning. Helping them to draft an advance healthcare directive and a power of attorney can ensure that you or another family member has the authority to make medical and financial decisions on your parents’ behalf if they’re unable to do so.

Photo credit: ©iStock.com/Halfpoint, ©iStock.com/byryo, ©iStock.com/Halfpoint

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Source: smartasset.com

Rock Legend Robbie Robertson Is Selling His $4.2M Beverly Hills Retreat

Robbie Robertson Beverly Hills HomeGeorge Rose/Getty Images, realtor.com

A gorgeous home in a private, yet convenient, location was an ideal place for the legendary recording artist Robbie Robertson to settle down and let the inspiration flow.

Now the songwriter behind “The Weight” is hoping to offload his prestigious perch. Robertson’s Beverly Hills, CA, home is on the market for $4,195,000.

Robertson purchased this sanctuary in 2012 for $2,676,755, and it’s been remodeled over the past decade. The home now sports a minimalist, modern aesthetic, with clean lines, new finishes, and up-to-date technology.

He first put it on the market in July 2020 for $4,895,000, and has gradually reduced the price over the months since.

Robbie Robertson’s Beverly Hills home

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Living room

The legendary musician wasn’t just working on tunes behind the front gates of this private sanctuary.

“Robertson bought this home as an escape to pen what would become his New York Times best-selling autobiography, ‘Testimony,’” says the listing agent, Ben Lee of Coldwell Banker Realty.

Lee also notes the appeal of the home’s setting and central location, high on North Beverly Drive across from Franklin Canyon Park.

“One of Beverly Hills’ best-kept secrets,” he says, “this ultra-private getaway boasts an incredibly scenic landscape, while remaining six minutes from the Beverly Hills Hotel.”

It must have been the ideal place for out-of-town collaborators of the former member of The Band, whether they stayed in one of the home’s five bedrooms, or in the nearby hotel. Guests could also make good use of the eight-car parking area at the end of the long and winding driveway.

The home has high ceilings, an open floor plan, and floor-to-ceiling glass windows and doors. The large windows connect people in the home to the lush canyon foliage and views.

Open floor plan

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Adding to the home’s modern vibe are glistening walnut floors, a floating staircase, and a gleaming state-of-the-art kitchen with stainless-steel appliances, custom cabinetry, and a generous central island with a cooktop.

Floating staircase

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Kitchen and breakfast nook

Sophisticated smart home technology is in place, and, naturally, there’s a professional-grade sound system.

Although the design is modern, the 3,219-square-foot residence has a cozy, inviting feeling, thanks to its four fireplaces. Even the cars stay warm (or cool) in the temperature-controlled garage with quartz flooring.

Deck with fire pit

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Garage with quartz flooring

At least one of the five bedrooms appears to have been used for studio purposes. The lavish master bedroom suite features a fireplace, canyon views, a large walk-in closet, and a deck. The master bathroom has a new steam shower, sunken tub, and still more views.

Studio/bedroom

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Master bedroom

The 1-acre grounds have a retreatlike feel. Outdoor accoutrements include a spacious patio deck made of limestone and Brazilian ipe wood, two fire pits, and a hot tub that flows into a tastefully lit modern pool.

Pool with waterfall Jacuzzi

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Robertson, 77, served as lead guitarist and songwriter for The Band. He penned rock classics like “The Night They Drove Old Dixie Down,” “Up on Cripple Creek,” and “Somewhere Down the Crazy River.”

As a solo artist and composer, he’s also known for musical collaborations on Martin Scorsese films, among them “Raging Bull,” “Casino,” “The Departed,” “The Wolf of Wall Street,” and “The Irishman.”

The post Rock Legend Robbie Robertson Is Selling His $4.2M Beverly Hills Retreat appeared first on Real Estate News & Insights | realtor.com®.

Source: realtor.com

Inside Supernatural Star Jensen Ackles’ ‘Very Hip’ Lake House in Austin

If you’re a die-hard Supernatural fan like us, you’re probably still reeling from the show’s finale and coping with the fact that there won’t be any new Winchester adventures for us to follow. But we’re not here to talk about that, but rather snoop into the private life of one of the series’ leading men. More specifically, Jensen Ackles’ house — which we actually think Dean Winchester would approve of.

The actor starring in CW’s longest running show and his wife Danneel opened up their 7,500-square-foot home in Austin, Texas to Architectural Digest, giving us a rare glimpse into the heartthrob’s home and personal life.

As the story goes, the couple was relocating from Los Angeles and initially considered buying a house down the road when they noticed this property (that wasn’t even for sale). But since they fell in love with it, the couple went ahead and asked the previous owners if they’d be willing to sell. And since it’s not easy resisting Jensen Ackles’ charms, they managed to convince the owners so the Ackles’ moved on to the next step –- redecorating the house.

To help out, they hired architect Paul Lamb and interior designer Fern Santini and together they came up with some brilliant ideas on how to best revamp their already-stunning new house.

“It was imperative that the house express the Ackleses — young, bold, and irreverent,” Lamb told AD.

Jensen Ackles’ house, which boasts five bedrooms, revolves around Danneel’s decorating outlook of “more is more is more!” There is a lot of color, texture, a lot of wood work going on to make it look like a lake house and endless decorations with some of the coolest background stories.

Let there be music

In Supernatural, Jensen loves music. Remember his spontaneous Eye of a Tiger outtake? Still fun to watch! There’s definitely more of where that came from in real life, since Jensen did his best to create an amazing acoustic sound in his house.

The living room is scattered with guitars and all across the shag rug lie comfy and colored floor pillows. All this because the couple loves having friends over, sitting on the floor, singing and playing the guitar.

Jensen was excited to talk about one of his favorite features of the house: “The hand-scraped wood floors undulate quite heavily, and we’ve got these giant beams and wood all around that feel like you’re in the hull of a giant ship.” “What that does is it creates an amazing acoustic sound,” he continues. “We’ve always had music in our lives, and we wanted to pass on that tradition.”

Jensen Ackles and his family at home in Austin, Texas
Jensen Ackles home in Austin, Texas. Image credit: Jeff Wilson for AD

Jensen’s kick-ass bar

They’ve taken care of the music, and to complete the ambiance they got rid of the formal dining room (that nobody used anyway) and replaced it with a kick-ass bar.

Placed on one end of the large living room, the bar is made out of black walnut with black and white veined marble. The cabinets were specially made to light the expensive bourbons it holds inside.

jensen ackles bar in his home in austin texas
Jensen Ackles home in Austin, Texas. Image credit: Jeff Wilson for AD

The master suite

There’s a master bedroom swaddled in Trove wallpaper bearing vintage photography of 1920s opera boxes. The wallpaper is covered in sections by Japanese-inspired barn door panels “because sometimes you need an audience and sometimes you don’t”.

 Jensen Ackles home in Austin, Texas.
Jensen Ackles home in Austin, Texas. Image credit: Douglas Friedman for AD

The master bathroom has a beautiful
bathtub sitting in front of a large window that provides a stunning view to the
lake.

The Mr. and Mrs. own two separate counters, because, you know, it just makes things easier in the mornings; and the inspiration for their master bathroom shower came from an Architectural Digest story featuring a steel and glass shower in the home of Neil Patrick Harris.

 Jensen Ackles home in Austin, Texas.
Jensen Ackles home in Austin, Texas. Image credit: Douglas Friedman for AD

Jensen Ackles’ bright, wood-framed home

Thanks to exposed beams, larger expanses of windows, and rich wooden ceilings, the architect managed to simplify and open the spaces. They simply tore down walls to let more natural light into the home.

Jensen’s favorite space is the breezy two-story screened porch that transformed the entire profile of the house; and his favorite piece – a custom long table made using a 2,000-year-old cypress log.

Parents of three

Jensen and Danneel have three beautiful children, so they had to choose the decor and furniture according to their needs as well. It appears that the couple’s eldest daughter would make a great interior designer once she grows up. The six-year-old girl, JJ, helped pick out all her own bedroom decor.

 Jensen Ackles home in Austin, Texas.
Jensen Ackles home in Austin, Texas. Image credit: Douglas Friedman for AD

Unsurprisingly, the kids’ favorite toy is a rolling acrylic table from the ‘50s, placed in the kitchen. Everybody loves a happy kitchen!

 Jensen Ackles home in Austin, Texas.
Jensen Ackles home in Austin, Texas. Image credit: Douglas Friedman for AD

Jensen Ackles’ home is full of hidden gems

The actor’s house is a personalized, eccentric, yet highly livable place. It was designed to resemble the Laurel Canyon bungalow the couple had once lived in and it’s a testament to the old school, Austin-style lake house.

The space is filled with all kinds of eccentric and eclectic objects—some useful, some decorative, some both. The decorations could be found in abundance in Austin during its bohemian period (the Ackles’ are active supporters of local art), as well as in late-60s California.

More beautiful celebrity homes

Rob Lowe’s Gorgeous House in Montecito is Back on the Market for $42.5 Million
Luxurious Malibu Estate Previously Owned by Kelsey Grammer On the Market for $20M
‘Hunger Games’ Actor Josh Hutcherson is Selling His Celebrity-Magnet “Tree House” in Hollywood Hills
Jessica Alba’s Los Angeles House is a Pinterest-Perfect Dream Home

The post Inside Supernatural Star Jensen Ackles’ ‘Very Hip’ Lake House in Austin appeared first on Fancy Pants Homes.

Source: fancypantshomes.com

Bundle Up! Winter’s Home-Buying Game Has Changed. Here’s How To Win

How to buy a house this winterViktoriia Hnatiuk / Getty Images

Savvy home buyers know that winter is typically a good time to embark on a house hunt, since much of their competition stays holed up at home until spring. But this winter, buyers might notice that despite the cold and the holidays, they’ve got company.

Lots of it, in fact.

“Normally winter is a good time for buyers,” says realtor.com® chief economist Danielle Hale. However, since the coronavirus kept buyers on lockdown for much of spring, many are making up for lost time by home shopping hard right now.

“This year’s unusual seasonal pattern means that buyers aren’t getting the usual break from the market frenzy that they typically do in the cooler weather,” Hale explains.

As a result, this winter is shaping up to be a seller’s market, with low real estate inventory, high prices, and bidding wars that could give buyers a major run for their money.

This doesn’t mean you should throw in the towel—just that you’ll have to hone your house hunt in new ways to suit the times. Here are some tactics that will keep you ahead of the pack so you’ll be sitting in a new home by the new year.

Secure your financing as soon as possible

Getting pre-approved for a mortgage and securing financing are an essential first step when buying a home. It gives you a clear picture of how much house you can afford, and lets you make an offer as soon as you find your dream home.

Matt van Winkle, a real estate broker and owner at Re/Max Northwest Realtors in Seattle, says this process is more important now than ever.

“Getting pre-approved for a loan is obviously important, but is there anything else they can do to put themselves in a good position?” he says. “Buyers need to be ready to buy a house before they start looking.”

Too often, buyers don’t line up their financing until they find a home they want to buy, van Winkle says. In the current competitive market, waiting to get pre-approval means you could lose out on purchasing a home you love.

“That creates a mad dash and stress to get everything lined up under pressure,” he says. “Get all your financing secured and ready before you look, that way when you find the right home you’re 100% ready.”

Starting early could also help you lock in an ultralow interest rate, which could affect your monthly mortgage payment and mean you could afford a more expensive home. As of Oct. 22, Freddie Mac listed rates at 2.8% for a 30-year fixed-rate loan.

Know what you want before you house hunt

COVID-19 has changed how we live and work. We’re spending much more time at home, and people are looking for different features in their living spaces.

Make a list of your must-haves before you start house shopping—and share your needs with your real estate agent.

Simon Isaacs, broker and owner of Simon Isaacs Real Estate in Palm Beach, FL, says it helps cut down on the number of homes you’ll have to view before finding the right one.

“I would suggest buyers not look at 25 homes,” he says. “If the agent is showing them that many houses, the agent doesn’t know what they want.”

In such a competitive landscape, knowing exactly what you want enables you to act fast when you want to make an offer.

Tour homes virtually first

More real estate agents are embracing virtual tours and remote showings to ease coronavirus safety concerns. In some cases, they’re even limiting in-person showings to the most serious buyers—those with financing already secured, for example.

“Real estate agents in our local market are adjusting to the client’s needs by continuing to provide in-person showings with precautions and also assisting buyers virtually with their home purchases,” says Matt Curtis, owner of Matt Curtis Real Estate in Huntsville, AL.

Virtual home tours, using Zoom or FaceTime, let you view the home from anywhere, and depending on the setup, you might be able to ask questions in real time. So you can narrow down the homes you’re most interested in and physically visit only the ones that best meet your needs.

Don’t dawdle if you want to make an offer

In September, there were nearly 40% fewer homes on the market than during the same month last year, according to a realtor.com report. At the same time, buyer demand has increased, creating an incredibly competitive marketplace. Homes were on the market for an average of 54 days in September, 12 fewer days than last year.

Tracy Jones, a real estate agent with Re/Max Platinum Realty in Sarasota, FL, says the buyers she’s worked with lately have had just a few homes to consider. And, with all the other buyers in a location also looking at those same houses, you’ll need to act fast if you’re interested.

The challenge, she says, is potential buyers have little time to mull things over, and they are pitted against one another.

Isaacs is seeing a similar situation. Wait too long to submit an offer, and another buyer is likely to swoop in with an offer of their own.

“I would say don’t deliberate on buying,” he says. “I’ve had too many clients who were [saying], ‘Should we, shouldn’t we.’ I would say if it’s something that you want to do, do it.”

Make your offer stand out

Since inventory is so low, sellers are getting multiple offers on their homes these days. To make sure yours gets accepted, you’ll need to make it stand out.

Cash offers and inspection waivers are some ways to make your offer more appealing, Curtis says.

A cash offer, if you can afford it, is attractive to sellers because it eliminates dealing with a mortgage lender and often speeds up closings. An inspection waiver comes with lots of risks, since you’re essentially agreeing to purchase a home as is, but the waiver removes any repair negotiations and helps you close faster.

For competitive markets, where you know you’ll be competing directly with many buyers, Jones suggests talking to your agent about escalation clauses. This is a contract addendum where you agree to pay more than other offers (up to a maximum you set).

Bottom line: “Find a strategy to help make your offer stand out amongst the 10, 20, or more offers that may come in on your dream home,” Curtis says.

The post Bundle Up! Winter’s Home-Buying Game Has Changed. Here’s How To Win appeared first on Real Estate News & Insights | realtor.com®.

Source: realtor.com

Is Your Mortgage Forbearance Ending Soon? What To Do Next

mortgage forbearanceSEAN GLADWELL / Getty Images

Millions of Americans struggling to make their monthly mortgage payments because of COVID-19 have received relief through the Coronavirus Aid, Relief, and Economic Security Act.

But mortgage forbearance is only temporary, and set to expire soon, leaving many homeowners who are still struggling perplexed on what to do next.

Enacted in March, the CARES Act initially granted a 180-day forbearance, or pause in payments, to homeowners with mortgages backed by the federal government or a government-sponsored enterprise such as Fannie Mae or Freddie Mac. Furthermore, some private lenders also granted mortgage forbearance of 90 days or more to financially distressed homeowners.

According to the Mortgage Bankers Association, 8.39% of loans were in forbearance as of June 28, representing an estimated 4.2 million homeowners nationwide.

So what are affected homeowners to do when the forbearance goes away? You have options, so it’s well worth contacting your lender to explore what’s best for you.

“If you know you’re going to be unable to meet the terms of your forbearance agreement at its maturity, you should call your loan servicer immediately and see what options they may be able to offer to you,” says Abel Carrasco, mortgage loan originator at Motto Mortgage Advisors in St. Petersburg, FL.

Exactly what’s available depends on the fine print in the terms of your mortgage forbearance agreement. Here’s an overview of some possible avenues to explore if you still can’t pay your mortgage after the forbearance period ends.

Extend your mortgage forbearance

One simple option is to contact your lender to request an extension.

Homeowners granted forbearance under the CARES Act can request a 180-day extension, giving them a total of 360 days of forbearance, according to the Consumer Financial Protection Bureau.

The key is to contact your lender well before your forbearance expires. If you let it expire without an extension, your lender could impose penalties.

“If you just stop making regular, scheduled payments, you could have a late mortgage payment on your credit,” warns Carrasco. “That could severely impact refinancing or purchasing another property in the immediate future and potentially subject you to foreclosure.”

Keep in mind, though, a forbearance simply delays payments, meaning they’ll still need to be made in the future. It doesn’t mean payments are forgiven.

Refinance to lower your mortgage payment

Mortgage interest rates are at all-time lows, hovering around 3%. So if you can swing it, this may be a great time to refinance your home, says Tendayi Kapfidze, chief economist at LendingTree.

Refinancing could come with some hefty fees, however, ranging from 2% to 6% of your loan amount. But it could be worth it.

A lower interest rate will likely lower your monthly payment and save you thousands over the life of your mortgage. Dropping your interest rate from 4.125% to 3% could save more than $40,000 over 30 years, for example, according to the Consumer Financial Protection Bureau.

“Lenders have tightened standards, though, so you will need to show that you are a good candidate for refinancing,” Kapfidze says. You’ll need a good credit score of 620 or higher.

As long as you’ve kept up your end of the forbearance terms, having a mortgage forbearance shouldn’t affect your credit score, or your ability to refinance or qualify for another mortgage.

Ask for a loan modification

Many lenders are offering an assortment of programs to help homeowners under hardship because of the pandemic, says Christopher Sailus, vice president and mortgage product manager at WaFd Bank.

“Lenders quickly recognized the severity of the economic situation due to the pandemic, and put programs into place to defer payments or help reduce them,” he says.

A loan modification is one such option. This enables homeowners at risk of default to change the terms of their original mortgage—such as payment amount, interest rate, or length of the loan—to reduce monthly payments and clear up any delinquencies.

Loan modifications may affect your credit score, but not as much as a foreclosure. Some lenders charge fees for loan modifications, but others, like WaFd, provide them at no cost.

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Watch: 5 Things to Know About Selling a Home Amid the Pandemic

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Put your home on the market

It may seem like a strange time to sell your home, with COVID-19 cases growing, unemployment rising, and the economy on shaky ground. But, it’s actually a great time to sell a house.

Pending home sales jumped 44.3% in May, according to the National Association of Realtors®’ Pending Home Sales Index, the largest month-over-month growth since the index began in 2001.

Home inventory remains low, and buyer demand is up with many hoping to jump on the low interest rates. Prices are up, too. The national median home price increased 7.7% in the first quarter of 2020, to $274,600, according to NAR.

So if you can no longer afford your home and have plenty of equity built up, listing your home may be a smart move. (Home equity is the market value of your home minus how much you still owe on your mortgage.)

Consider foreclosure as a last resort

Foreclosure may be the only option for many homeowners, especially if you fall too behind on your mortgage payments and can’t afford to sell or refinance. In May, more than 7% of mortgages were delinquent, a 20% increase from April, according to mortgage data and analytics firm Black Knight.

“When to begin a foreclosure process will vary from lender to lender and client to client,” Sailus says. “Current and future state and federal legislation, statutes, or regulations will impact the process, as will the individual homeowner’s situation and their ability to repay.”

Foreclosures won’t begin until after a forbearance period ends, he adds.

The CARES Act prohibited lenders from foreclosing on mortgages backed by the government or government-sponsored enterprise until at least Aug. 31. Several states, including California and Connecticut, also issued temporary foreclosure moratoriums and stays.

Once these grace periods (and forbearance timelines) end, and homeowners miss payments, they could face foreclosure, Carrasco says. When a loan is flagged as being in foreclosure, the balance is due and legal fees accumulate, requiring homeowners to pay off the loan (usually by selling) and vacating the property.

“Absent participation in an agreed-upon forbearance, deferment, repayment plan, or loan modification, loan servicers historically may begin the foreclosure process after as few as three months of missed mortgage payments,” he explains. “This is unfortunately often the point of no return.”

The post Is Your Mortgage Forbearance Ending Soon? What To Do Next appeared first on Real Estate News & Insights | realtor.com®.

Source: realtor.com