Time is running out for homeowners with mortgage delinquencies, directly due to the COVID crisis, to apply for relief. Funds were made available in November to pay mortgage delinquencies, but those funds must be dispersed by December 31.
The grant is administered by the Credit Counseling Center and is made possible by the Bucks County Department Housing and Community Development, said Joan Reading, executive director of the counseling center.
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Despite the deadline, it’s not the only program available aimed helping people avoid foreclosure, Reading said.
But immediate action is needed to take advantage of the COVID-related grant. However, if an applicant doesn’t qualify for this money, there are other options, the CCC director said.
“People have lost jobs long before COVID and found themselves in a financial dilemma,” Reading said.
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There are deferment programs, by which a lender might be willing to tack the unpaid mortgage on to the end of the loan. But, Reading cautioned, that last payment comes at a cost because the full amount of money for each skipped payment will be due at that time.
That balloon payment could amount to several thousand dollars.
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Another option could be taking advantage of the counseling center’s mortgage modification programs. Some people may also qualify for a foreclosure prevention program.
“We are in court once a month to try to prevent foreclosure,” Reading said.
This is not the first COVID-19-related mortgage break. The current deadline had been extended by the state. The program was initially slated to end November 30.
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The final word is that, if a homeowner gets into mortgage problems, it is imperative to call their lender, or the Credit Counseling Center immediately, Reading said.
Contact the center at 215-348-8003, or visit the website: www.creditcounselingcenter.org.
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