Insight from the Law office of Joseph Marino, PC

The COVID-19 pandemic has irrevocably changed the lives of many. It has caused disaster on a global scale, killing millions and causing border closures, political unrest, and economic upheaval.

One economic area that has been severely impacted by the pandemic is the housing market. As the world slowly begins to recover from COVID-19, the global economy is also beginning to stabilize. However, individuals are still struggling to make ends meet.

This article will discuss how COVID affected the housing market in the U.S. and will explain how its impact can still be seen.

Decline in Rental Demands

When the virus hit, low-income households were among those most sorely affected. Many of these households are largely composed of retail or hospitality workers—industries that were left crippled by COVID-19.

These people lost their jobs, and as a result, it became more and more difficult to keep up with rent prices.

Many people decided to move back in with family to try and keep their heads above water.

As a result, there was a steep decline in demand for rental properties at this early stage in the pandemic.

Greater Demand for Homes in Affordable Areas

With cafes, restaurants, museums, and theaters all closing in metropolitan cities, many locals decided to move out of these areas into more affordable locations.

With such amenities no longer open, there was little reason to continue to pay such high prices to remain in such expensive accommodation. 

As a result of this, there was a massive increase in housing demands in more affordable city areas.

Homeowners Struggling to Pay Bills

As thousands of people throughout the country lost their jobs as a result of the COVID-19 pandemic, it became more and more difficult for them to keep up with bills, rent, and mortgages. 

The Federal Housing Administration (FHA) introduced COVID-19 Loss Mitigation options for people who couldn’t afford to pay their mortgages. These borrowers could ask their mortgage providers for forbearance, which would allow them to temporarily halt or lower their mortgage payments.

Forbearance periods do not go on forever, however. They will be brought to a stop by September 30, 2022, or half a year following the end of the Presidentially Declared COVID-19 National Emergency—whichever of these dates comes later.

Do You Need Help With Your Mortgage?

If COVID-19 has impacted your ability to pay off your mortgage and you’re unsure of what action is available for you to take, the Law Office of Joseph Marino, PC, can help resolve your issues.

Among our various services, we offer loan modifications. This allows you to permanently alter the original terms and conditions set out in your mortgage.

A loan modification is not the same thing as refinancing; it does not pay off whatever remains of your loan. It simply changes the terms of the loan themselves.

If you want to take back control of your life and your finances following the COVID-19 pandemic, get in touch today for a free consultation, Call 631-502-5650