Government Agencies Extend Foreclosure And Eviction Moratoriums

June 17, 2020

The Federal Housing Administration announced today that it is extending foreclosure and eviction moratoriums through August 31 for homeowners with FHA-insured single-family mortgages. The current moratorium was set to expire on June 30.

 

The Federal Housing Finance Agency joined FHA in lengthening its eviction and foreclosure moratorium up to two months to help borrowers and renters who are at risk of losing their homes due to the coronavirus pandemic.

 

FHA’s moratorium extension applies to homeowners with FHA-insured Title II Single Family Forward and home equity conversion (reverse) mortgages, and continues to direct mortgage servicers to halt all new foreclosure actions and suspend all foreclosure actions in process, excluding legally vacant or abandoned properties; and cease all evictions of people from FHA-insured single-family properties, excluding actions to evict occupants of legally vacant or abandoned properties.

 

“While the economic recovery is already underway, many American families still need more time and assistance to regain their financial footing,” said HUD Secretary Ben Carson. “Our foreclosure and eviction extension means that these families will not have to worry about losing their home as they work to recover from the financial impacts of COVID-19.”

 

Homeowners with FHA-insured mortgages should continue to make their mortgage payments during the foreclosure and eviction moratorium if they are able to do so, or seek mortgage payment forbearance under the Coronavirus Relief and Economic Security Act (CARES) Act from their mortgage servicer.

 

Under the CARES Act, the FHA requires mortgage servicers to:

 

  • Offer borrowers with FHA-insured mortgages up to a year of delayed mortgage payment forbearance when the borrower requests it. FHA does not require a lump-sum payment at the end of the forbearance period.

  • Assess borrowers who receive COVID-19 forbearance for its special COVID-19 National Emergency Standalone Partial Claim before the end of the forbearance period. The COVID-19 National Emergency Standalone Partial Claim puts all deferred mortgage payment amounts owed into a junior lien, which is only repaid when the borrower sells the home, refinances the mortgage, or the mortgage is otherwise extinguished. 

 

The Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac, government-sponsored enterprises, to suspend foreclosures and evictions until at least August 31. The moratorium, which was set to expire June 30, applies only to Enterprise-backed single-family mortgages.

 

“To protect borrowers and renters during the pandemic we are extending the Enterprises’ foreclosure and eviction moratorium,” said FHFA director Mark Calabria. “During this national health emergency, no one should worry about losing their home.”

 

For more information about housing assistance, visit cfpb.gov/housing.

 

via Forbes

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