Covid Mortgage Relief Has Ended in Utah, Now What?

While experts say Covid is here to stay, Covid mortgage relief is not. Millions of Americans took advantage of the mortgage forbearance protection and as it has come to a close many are wondering about loan modification options after Covid forbearance. You do have some options after Covid mortgage relief ends.

Covid Mortgage Relief Ending and Your Options

Loan Modification After Forbearance

If you find yourself in a spot where you can no longer afford to make your regular mortgage payment anymore then you may be able to qualify for a loan modification.

A loan modification would reduce your payment to an amount that you can pay with your missed payments being added to the amount you owe on your mortgage. Depending on your circumstances your monthly payment could also be lowered but that may add years back onto your mortgage repayment timeline.

If you receive a loan modification you’ll be required to enter into a trial period where you need to make the payments on time for several consecutive months in order to ensure that you can meet the modified payment amount.

Loan Modification Not an Option for You?

Loan Modification Not an Option for You?

If a loan modification doesn’t sound like it will solve your payment problems as you exit forbearance then you aren’t out of options. Your mortgage servicer should have contacted you at this point to discuss your financial situation and the options available to you. One of these other exit strategies may be a better fit for you then a loan modification after forbearance:


With reinstatement you pay the total amount of forbearance at once. If you can afford to pay all your missed payments from Covid then this is the best option for you to pay the lump sum and move on.

Repayment Plan

A repayment plan can be worked out with your mortgage servicer if you feel you can catch up on missed payments over a 12-month period (or less). These plans allow you to repay the forbearance money back in additional monthly payments on top of your regular mortgage payments.

Covid-19 Payment Deferral

If you get approved for a Covid-19 payment deferral then you can delay your forbearance payments without affecting the terms of your underlying mortgage. If you can’t afford to do a reinstatement or repayment plan then this is potentially a viable option for you.

With a payment deferral you will not be charged interest on your forbearance total, it will simply be due in full at the end of your mortgage loan or at the time of welling or transferring the property, refinancing or paying off your principle.


If you are hoping for new terms to make paying back your forbearance more manageable then refinancing your loan to different terms could be the solution for you. Work with your mortgage servicer to see how interest and term rates can help you refinance into a more affordable loan with the forbearance amount added to it.

Still Financially Impacted by Covid-19?

The repercussions of Covid-19 on your finances can last longer than any other symptom of the pandemic. If you find yourself in a situation where you can no longer afford the payments on your home and modifying the loan wont help then you may need to consider selling your home to take care of both the mortgage and the forbearance amount.

If your home is new or in good shape then you may be able to benefit from the hot housing market in Utah right now. If you have an older home that is in need of work and major repairs then you may not be as lucky. Homeowners who find themselves unable to pay a mortgage and unable to pay to fix up their home before selling can feel stuck with no solution in sight. In these scenarios you can count on a trusted home buyer like Gary with Gary Buys Houses.

Gary purchases homes as-is and can work out terms and help you work through the legal and financial obligations associated with a forbearance. He won’t just write you a check and leave you to figure out the details on your own, he will work with you and offer customized help so you can walk away from an overwhelming mortgage payment.

If a loan modification after forbearance won’t help your situation then call Gary today and see how quickly he can help with a cash offer today.


I was a part owner in an electrical contracting firm in the late 1990’s and started to get interested in real estate around 2001. My business partner and I bought our first rental property in 2002. From there we did several real estate transactions until we decided to close the electrical business and part ways. In 2009 I started Gary Buys Houses which is owned by my wife, Eileen, and I. I felt like I could offer one on one personal service to people that wanted to sell their house quickly or not worry about repairs and such. Today, I have built a reputation of being fair and honest with people no matter their situation, so the business continues to help people and be successful. I have been married for 34 years, and have one son, two step sons and 4 grandchildren. I like to travel and spend time in Southern Utah exploring.

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