FARMINGTON HILLS, Mich.–An organization that provides counseling and financial wellness assistance said it is expecting to see a new surge in calls for help as various government assistance programs expire.
GreenPath Financial Wellness said during the early weeks of the pandemic, its Homeownership Preservation Foundation saw a 50% increase in calls into the HOPE Hotline (888-995-HOPE). Now, as many CARES Act provisions near expansion, and with 8.18% of mortgage loans in forbearance as of July 5, it is anticipating the end to forbearance programs, enhanced unemployment benefits, and eviction bans will overwhelm organizations such as itself and credit unions as consumers look for help.
Callers are ‘Anxious’
“Many callers haven’t seen a change/improvement in their income situation, and are unable to save or make payments,” GreenPath said. “Callers are relying on the forbearance received, are anxious about losing their homes, must weigh how they will pay for essentials to support their households and are looking for continued help.”
“The end of forbearance and deferment periods will be here before we know it. Even if lenders decide to extend relief, the earlier borrowers prepare to resume payments, the better,” says Kristen Holt, president and CEO, GreenPath Financial Wellness. “Now is a good time for borrowers to take a close look at not only any loans currently on pause, but their entire financial picture.”