With the year 2021 behind us, it appears as though the effects of the coronavirus pandemic and its variants will continue to be a theme again this year. 2021 was different as the economy started to bounce back and the world started the process of returning to normal with mask mandates and other restrictions starting to lift. So, how will 2022 be different?
While Goldman Sachs has reported that the new variant “Omicron” will create some uncertainty about the future of the U.S. economy, they admit that virus-control policy is no longer as sensitive to virus spread as it was previously. This conclusion suggests that continued COVID-19 updates and infections will likely not trigger restrictions and reactions as it did in 2020. Further, I would expect that mortgage forbearances and other COVID relief has reached its end.
Therefore, individuals that had a decrease in income during the pandemic or have otherwise fallen behind on their mortgage are likely going to face a more aggressive mortgage lender in 2022. Experts such as Miriam Moore, division president of default services for mortgage solutions company ServiceLink, told US News & World Report that she expects what will feel like a surge of foreclosure and auction activity in 2022, largely because there were so few foreclosures in 2020 and 2021 as a result of moratoriums and other policies in place to halt foreclosures almost entirely.
Therefore, individuals still facing financial hardship due to an unbalanced budget (either due to mortgage arrears or otherwise) should explore their options with an attorney. I have previously spoken about debt settlement companies, and would recommend against them. You may only need someone to negotiate on your behalf. You may need legal intervention. Either way, feel free to reach out for a free consultation to determine what strategy is best for you. Ross, Quinn & Ploppert at 610-323-5300 for a stress-free consultation.