Student Loan Moratorium Deadline May Be Lurking for New Homebuyers
It seems the end of February will determine if student Loan relief becomes a reality or not as the case for Student Loan Debt Relief is scheduled to be heard in the US Supreme Court toward the end of February. Our stance here at PropertyGuerilla.com is not one of for or against, but ours is more of a question of what might happen to those who took advantage of the moratoriums on loan payments and subsequently purchased homes or real estate for a home? The current moratorium is scheduled to end on June 30th,2023 but that could be sooner if the Court determines this action of relief to have been unconstitutional or illegal.
The manner in which this pause enabled younger borrowers facing student debt to capitalize on the situation was pretty straightforward. It had, in many cases, a significant impact on one of the key measures required to qualify for a mortgage known as the Debt to Income ratio. If this debt, which is currently only postponed and not yet relieved, is found to be required to repaid as originally agreed to, what effect might this have on those new homeowners who relied on the fact that their debt was going to be relieved?
Of course, we stand behind any program or legislation that offers more availability for anyone to buy a home, but as this was not yet legislation, we are beyond concerned for the potential implications for Buyers who may potentially be affected. In addition, we'll look forward to the Lenders explanations as to why and how they made adjustments to this critical ratio before it actually became the law if it does become problematic. If you were one of those folks fortunate enough to be able to buy a home as a result of this moratorium, you may wish to consult with your Realtor® or more importantly, your Lender to determine how an adverse ruling from the Court might affect you! To be sure, we're not even sure that the ramifications of this have even been considered (but hope beyond all hopes that it has), but it certainly seems worth further review before it catches many by surprise. The more you know!