Mortgage relief and what to do when forbearance programs expire

Berkshire Hathaway HomeServices Florida Network Realty and Prosperity Home Mortgage Offer Trusted Guidance and Expertise

Many homeowners ready to exit forbearance may not realize they would get
the equity out of their home if they sell in today’s market.

The coronavirus pandemic has caused job and income loss for millions of Americans. Fortunately, there is relief available to homeowners who risk falling behind on their mortgage payments.

Since March, many have found mortgage relief in forbearance. There are currently about 3.5 million Americans in a forbearance on their mortgage. Any homeowner experiencing financial hardship has the right to request forbearance.

What is mortgage forbearance?

Forbearance allows borrowers to pause or temporarily reduce mortgage payments for a certain period of time, but these payments eventually will come due. With most forbearance agreements, lenders and servicers expect repayment in full over time. While the forbearance period gives homeowners much-needed help, some borrowers are facing economic challenges as they prepare to exit forbearance.

“It’s vital to analyze if forbearance is the best option and consider its potential impacts,” said Prosperity Home Mortgage Regional Market Manager Eric Spottswood. “Each person’s scenario is unique, and it’s always wise to talk to a trusted Mortgage Consultant before making any decisions regarding going into forbearance. My advice to borrowers is to always make payments if you have the ability to do so.”

What options are available when mortgage forbearance ends?

For those struggling to make monthly mortgage payments or playing “catch up” on repayment plans and the forbearance period is set to expire soon, consider the options available. No one wants to risk triggering foreclosure. Contact your mortgage lender to discuss possibilities including refinancing a mortgage, loan modification or extending mortgage forbearance. Another option many homeowners may not realize they have is the ability to sell their house in this time of need and avoid foreclosure.

“With the growing equity that homeowners have available today, making a move might be the best option to protect your financial future,” said Berkshire Hathaway HomeServices Florida Network Realty President and CEO Christy Budnick. “Many homeowners in mortgage forbearance would get the equity out of their home in today’s market, putting them in a better financial position than trying to hold on and ultimately having to go into foreclosure.”

Market Opportunities

            For those contemplating selling their home, the current real estate market is booming. Record low interest rates are motivating buyers while limited homes available for sale and price appreciation are providing sellers with a unique opportunity to maximize their homes’ value and earn more profit. The low inventory of homes available for sale is driving home price increases. Most sellers, if their home is well priced, in good condition and in a good location, will make between five to 15 percent more on the sale of their home than they would have at the beginning of this year.

A Home’s True Market Value

To determine a home’s value, online valuation estimators are a good place to start. They are available on many websites including Berkshire Hathaway HomeServices Florida Network Realty. http://valuations.floridanetworkrealty.com.

While a valuation tool is a useful starting point, a home’s true market value and an individual’s equity position are best determined by a trusted Realtor who understands the local market and has expert knowledge. Contact a Berkshire Hathaway HomeServices Florida Network Realty Realtor for no obligation competitive market analysis.

What to do when mortgage forbearance ends

• Contact your mortgage lender
• Refinance your mortgage
• Consider a loan modification
• Extend your mortgage forbearance
• Sell your home for equity

To learn more, visit www.FloridaNetworkRealty.com. For more information on Prosperity Home Mortgage, visit www.PHMLoans.com.

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Linda Lindenmoyer: A front seat to the city’s economic development

The Berkshire Hathaway HomeServices Florida Network Realty corporate relocation vice president works with JAXUSA to bring new companies and their employees to the city.

Despite the pandemic, Linda Lindenmoyer, Berkshire Hathaway’s vice president of relocation services, said her department has been busier than ever helping new residents settle into Jacksonville.

Part of that can be attributed to an influx of remote workers relocating to Jacksonville, she said. They are coming from more densely populated and expensive regions of the country, like the northeast and northwest.

“Companies in those areas are reaching out to JAXUSA and our company directly about relocating or expanding their business into Northeast Florida because COVID has shown them many of their employees can work remotely,” said Lindenmoyer, who also serves as chair of JAXUSA Partnership’s business development committee.

“So maybe it’s not important to have an office in the city anymore. It’s cheaper to do business here and it’s easier to do business here.”

JAXUSA is the economic development division of JAX Chamber.

Lindenmoyer said individuals reach out to her company directly who want to relocate to Jacksonville so they can work remotely in a cheaper area with a better quality of life.

“We don’t expect that to slow down for some time,” she said. “Even though that’s not our typical customer, we’re here to help anyone who needs help.”

In her role with JAXUSA, Lindenmoyer meets with company leaders who are considering moving their operations to Jacksonville.

She shows them what it’s like to live in Jacksonville and gives tours of the area.

“Everything that you can possibly imagine that decision-makers would be interested in for their company and their employees,” she said.

Photo by Katie Garwood Linda Lindenmoyer, Berkshire Hathaway’s vice president of relocation services is taking calls from workers who want to relocate to Jacksonville for the low cost of living while working remotely.

At Berkshire Hathaway, she and about 100 relocation agents work to coordinate moves to Jacksonville, help newcomers find homes and assist their spouses in finding employment in Jacksonville when they arrive.

Lindenmoyer said JAXUSA already has hit its 2020 target for recruiting companies and new jobs to the area.

She said she suspects that has to do with Jacksonville’s diverse business community, which makes it easier for the city to recover from the COVIDrelated economic downturn.

“We don’t have a strong dependence on one industry,” she said. “It sets an environment for companies to enjoy doing business here.”

Recently, she said she’s been noticing more workers in several industries relocating to the city: IT and innovation, logistics, advanced manufacturing, financial services and new headquarters.

As far as what those companies want when they arrive, Lindenmoyer said it varies by company and by the individual employee.

On a general tour of the city, Lindenmoyer takes the company’s decisionmakers through Downtown, by the sports arenas, to the beach, along the Intracoastal Waterway and St. Johns River and to arts and cultural centers.

Individuals relocating often have specific areas they want to see, such as neighborhoods near their office or their children’s school.

“The good news is Northeast Florida has everything someone could possibly want,” she said. “We have every type of housing anyone could want, except igloos.”

Lindenmoyer has been in corporate relocation for about 22 years. Before that, she worked in residential and commercial real estate.

She realized the necessity of her industry when she and her husband relocated to Jacksonville from North Carolina in 1992. Her husband’s employer covered some moving expenses, but Lindenmoyer said they had no other assistance in house hunting or learning about the city.

“I know what it’s like to struggle to come to a new city, especially one as large as Jacksonville, and figure out where we want to live,” she said.

“I’ve heard so many people say what it has meant to them just to have that resource that will hold their hand through that process. It’s very rewarding.”

Written by:
Katie Garwood, Staff Writer
Jax Daily Record

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How Real Estate Will/Won’t Change from COVID-19

Nineteenth century-French novelist Alphonse Karr probably wasn’t referring to a global pandemic when he first wrote, “The more things change, the more they stay the same.” Those of us here in 2020 can surely attest to that as our lives have been dramatically altered as a result of COVID-19. From stay-at-home orders and government shutdowns to social distancing and mandates for wearing masks, life today is vastly different from life just a few months ago.

The same can be said for how we work, a point that is especially true for real estate agents. With so much in flux, agents have had to get creative with how they move houses, both on the buy- and sell-side. But are these modifications just temporary or permanent? 

The answer is both. 

To help understand what we mean when we say that, read on for a breakdown of how real estate will and won’t change with COVID-19.

How real estate will change with COVID-19

Let’s start with the ways that COVID-19 could change the face of real estate forever. The most likely change to stick is the use of technology to support virtual visits and open houses. While 3-D tours and video walkthroughs were a tool in an agent’s toolbox for occasional use, social distancing guidelines essentially made it mandatory — and that’s something we don’t see changing. The days of buyers caravanning through 10 or 15 houses in one day are likely over. Instead, these virtual tours will allow buyers to easily eliminate properties that are clearly not “the one” so that they can whittle the list down to a more manageable number.

But it’s not just searching for a new home that’s ripe for change — it’s the entire purchasing pipeline. COVID-19 has thrust a digital, or at least a more hands-off, revolution upon us that’s sent ripples throughout each step of the process. Those ripples include a shift to drive-by and desktop appraisals and remote online notarization for closing. Even inspectors are conducting examinations with the buyer tagging along via video chat.

It’s unclear how long COVID-19 will be a concern in the U.S., but most expect it to be a problem for some time. These adjustments to longstanding processes are not only more convenient for buyers and sellers, but they’re in alignment with the type of tech used in other transactional situations.

How real estate won’t change with COVID-19

Beginning with arguably the most critical point, the first thing to know is that location will continue to drive market activity. The caveat here is that it may not be a good thing for some areas. Regions with established neighborhoods, a solid economy, high quality of life, and superb school systems (like what’s in Northeast Florida) with ample amenities will continue to move, but cities or regions hurt by the pandemic will likely be slower to rebound. Places like Las Vegas that are almost entirely dependent on hospitality will need more time to recover as visitors will be less likely to travel.

We also can’t underscore the importance of a professional agent in the process — if for nothing else, to be a sounding board for buyers and sellers and help manage the hundreds of steps in a real estate transaction. Those conversations may be more likely to take place over video chat or text for now and even in the future if more convenient, but customers will always rely on their agents for sage advice.

Lastly, a poor pricing strategy will remain one of the biggest impediments to closing a deal. Even at the height of COVID-19, buyers were willing to jump through many hoops for homes at the right price. As we get to the other side of the pandemic, buyers will be even more cognizant of how far their dollars will stretch.

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