The federal foreclosure moratorium has ended. Struggling homeowners may still be able to keep their homes.  STOCK IMAGE: A man overwhelmed with past-due bills and debt. (iStock) | Now that the federal moratorium on mortgage foreclosures has ended, homeowners will have to reckon with thousands of dollars of overdue payments that were paused for more than a year. But don't despair, there's still a lot of help available. President Biden announced on Tuesday a temporary halt on evictions in many parts of the country, but the initiative did not specify additional relief for homeowners who have fallen behind on mortgages because of the pandemic. Under the Cares Act, borrowers hit hard by the pandemic and having trouble making their mortgage payments were provided with two vital types of protection. One was a foreclosure moratorium, which ended July 31. The second protection gave borrowers the right to ask for and receive a forbearance, which permits them to temporarily stop making mortgage payments. The automatic approval of pandemic-related relief was key. People generally couldn't be rejected for forbearance. While officially the relief only applied to federally owned or backed loans, many private lenders followed the government's lead. As pandemic-specific protections sunset, help is still available to prevent homes from going into foreclosure. Here's what you need to know if you can't pay your mortgage. What happens now that the foreclosure moratorium has ended? Lenders can proceed with foreclosures, especially for borrowers who have abandoned their properties or haven't responded to outreach from their mortgage servicers. The Consumer Financial Protection Bureau says that if you received forbearance under the Cares Act and you're still experiencing financial hardship because of the pandemic, you may be entitled to ask for and receive an extension. You can get an extension as long as you haven't reached the maximum months of forbearance, points out Mark McArdle, the CFPB's assistant director for mortgage markets. For most borrowers who began forbearance last spring, the 18-month maximum will be this fall. "A consumer who has not entered forbearance as of now can enter forbearance," McArdle said. "Folks who have exited forbearance and then want to reenter, they can still reenter." But you need to ask for assistance. It won't happen automatically. You need to contact your mortgage servicer. How much time do I have? The Federal Housing Administration announced an extension of the foreclosure-related eviction moratorium for foreclosed borrowers through Sept. 30. "FHA's eviction moratorium extension will avoid displacement of foreclosed borrowers and other occupants who need more time to access suitable housing options after foreclosure." the agency said. The Biden administration has extended the forbearance enrollment window through Sept. 30 for government-backed loans, about 75 percent of all mortgages, according to the General Accountability Office. Such loans are guaranteed, insured, made directly by, purchased or securitized by Fannie Mae, Freddie Mac, and the Department of Housing and Urban Development/FHA, the Department of Veterans Affairs, and the Agriculture Department. The extended pandemic-related forbearance could last up to 12 months. If I'm exiting a forbearance, what's happens next? If you're still experiencing financial trouble, starting Aug. 31, most mortgage servicers must tell you about repayment or other options when they reach out to you, according to a CFPB rule that has been updated in light of the pandemic. The watchdog agency says that except in limited circumstances, servicers can't start the foreclosure process before Jan. 1, 2022. The servicer has to reach out to you first, examine your situation and then explore options to help you avoid foreclosure. You can find a lot of answers to your questions and guidance on the CFPB's website, consumerfinance.gov. Look for the unified housing link. What are my options for catching up on missed mortgage payments during the moratorium? There are various ways you can deal with past-due mortgage payments. Generally, there are four options, according to McArdle. - Reinstatement (pay it all back in a lump sum)
- Payment plan (higher payments to pay back over a period of time)
- Deferral (move missed payments to the back of the loan, resume making old payment)
- Loan modification (changing the terms of the loan to achieve a lower payment)
"The last two options are the ones most consumers will use to exit forbearance," he said. If none of these options are doable, you could sell your home. And unlike during the Great Recession, you may walk away with some money because housing prices are skyrocketing in many areas. "Some folks have equity, which is different than the last crisis," McArdle said. "It's possible that if you need to leave your home, you can leave with some equity, as opposed to eroding that equity through the foreclosure process." If I don't have the money to pay my mortgage, why should I contact my loan servicer? Your lack of communication could actually speed up the foreclosure process. In some states, a foreclosure can happen in as soon as a few months. The help you need won't happen if you don't communicate with your mortgage servicer. Under the new CFPB rules, the servicer can proceed with a referral for foreclosure if the company hasn't received any communications after 90 days. "Don't dodge the call from your servicer," McArdle said. What should I do if my loan servicer isn't helping me? HUD-approved housing counselors can discuss options with you if you're having trouble getting help from your mortgage servicer. At hud.gov, you can find a link to a housing counseling agency or call toll-free 800-569-4287. If you are not getting the assistance you need, you should also file a complaint with the CFPB. At consumerfinance.gov, click the link that says "Submit a Complaint." Reader Question of the Week If you have a personal finance or retirement question, send it to colorofmoney@washpost.com. In the subject line, put "Question of the Week." Please note that questions may be edited for clarity. Q: My husband has a 401(k) account with a previous employer. What is the best thing to do with that money? Leave it there or move it to his own IRA? A: To stay or go is a dilemma many folks face with their workplace retirement plan when they leave a job or retire. One thing's for sure: If you're merely changing jobs and you're not in dire straits, don't cash out. It's tempting, but if you're younger than 59½, you'll be subject to a 10 percent early withdrawal penalty in addition to having to pay income taxes on the distribution. When it comes to the 401(k) funds, there isn't one course of action that everyone should take, because what's best depends on your individual situation. Often people assume they should move the money, but that's not necessarily the right decision. Here's what you need to consider. - Does the plan offered by your former employer provide good investment options?
- Are you looking for a wider selection of investment options?
- Can you roll over the old 401(k) into a current employer plan, which might have better investment options?
- What are the fees for the old plan?
- What are the fees for where you might roll over the money?
- Do you mind managing multiple retirement plans?
Here are some articles that will help you consider the pros and cons of rolling over 401(k) funds. The Balance: Think Twice Before Deciding What to Do With an Old 401k Bankrate: How to roll over your 401(k) in 5 easy steps NerdWallet: How to Roll Over a 401(k) to an IRA in 4 Steps Investopedia: What Happens to a 401(k) After You Leave Your Job? In Retirement News Part of planning for retirement and then living on the money you've saved or invested for retirement is keeping up with the issues that you need to know. In this section, I feature blogs, news stories, new research, surveys, and government policy changes that could affect your retirement. If you see a news story or issue you think would help folks, let me know and I'll check it out and share it with newsletter subscribers. This week, let's talk about a "trial-run" retirement. I'm several years away from retirement but I dream about this next season of my life quite often. On paper, I've tried out retirement to see how the numbers would work. Christine Benz, director of personal finance for Morningstar, recently reposted a column she wrote after returning from a six-week sabbatical from work. Every four years, Morningstar's U.S. employees can take a paid six-week sabbatical. "After years of researching and writing about the financial side of retirement, my break gave me a sense of the lifestyle aspect of not working," Benz wrote. Here are some key takeaways from her test-run retirement. - She was more focused.
- She doesn't want to spend her retirement years crossing off mundane to-dos.
- She balanced fun with mundane tasks.
- She missed her co-workers.
- She had to unplug.
- More time meant less spending.
For more about Benz's brush with retired life, read: What I Learned From My 'Faux-tirement' Retirement Rants and Raves What are your thoughts about saving for retirement? If you're retired, how is it going? What advice would you have for others about retirement? This is your space to rant or rave about anything related to retirement. Send your comments to colorofmoney@washpost.com. Please include your name, city and state. In the subject line put "Retirement Rants and Raves." Responses may be edited for clarity. Mary Sanders of Des Moines, Iowa, wondered about health insurance for people who retire early if they don't have a working spouse. "What are they doing for health insurance and how much?" Sanders asked. "I turned 65 in late 2018 and purposely waited until I was eligible for Medicare because it was during the Trump administration and there was always the fear the Affordable Care Act could be done away with. If there was no ACA, then health insurance could either be unavailable or unaffordable, costing in the thousands per month. Articles about early retirement rarely address this issue." Sanders has a point. "Many early retirees underestimate the potential cost of paying for private health insurance during the years before they become eligible for Medicare, writes Shelly Gigante in a recent article for MassMutual. "Premiums for private health insurance, even for a few years, can consume an oversized portion of your hard-earned savings, which could undermine your ability to make ends meet throughout retirement." Gigante offers some great advice in "Retiring early? A guide for securing health insurance" For an estimate of how much it will cost to purchase insurance in health insurance exchanges created by the ACA, use KFF (Kaiser Family Foundation) Health Insurance Marketplace Calculator. | 
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