MORATORIUM/FORECLOSURE FREEZE is not the "Magic Pill"

                                             MORATORIUM/FORECLOSURE FREEZE is not the "Magic Pill"

     I am noticing a trend in the information that homeowners are receiving about the current Lender Moratorium.  I do understand most homeowners and their need to feel like there is a “magic pill” that will make their pending foreclosure disappear. The moratorium unfortunately is not that magic pill.

      I am hearing the rumblings in the marketplace, that people think the moratorium means that there is an abatement or STOP of the foreclosure.  I think it is really important for homeowners facing foreclosure to understand that there is no “get out of your mortgage” free card.

     The reality is that the Moratorium = time, it will not save your home. It delays the process but does not stop the foreclosure.  The homeowner may be able to stay in the home longer even if they are not paying the mortgage but it does NOT stop or eliminate the bank taking the property back through a foreclosure process.

     Traditionally the moratoriums always appear in the holiday seasons. It is difficult for any of the banks to have their institutions attached to homeowners being forced out of their home at Christmas time.  Trees decorated with tiny lights and ribbon covered gifts underneath it, is not the best PR for any lender.  The lending industry already has enough smears to their reputation and none of them want to look like the GRINCH at Christmas time.

       Homeowners, even during the moratorium need to be looking for solutions and answers to their current situation.  They need to talk to a knowledgeable REALTOR that can give them sound advice about how to avoid foreclosure because it is inevitable if you are not making your mortgage payments.

    The truth is that when the homeowner borrowed the money to buy the home that a “contract to pay” was signed.  There was a mortgage taken out against the property and the homeowner agreed to pay the note.  The home is still the bank’s asset and they are not going to simple walk away and let homeowners stay in the home, if they are not making their agreed upon mortgage payments.

     Letting homeowners know the truth and reality of the situation is key.  It will help them move forward with the difficult decisions that will need to be made if they are in, or facing foreclosure.  The “temporary” moratorium will only allow them more TIME to consider their options, not make their situation go away.