Foreclosure Ban and Forbearance Extended Until June 30th

By Kurt Real Estate Feb 20, 2021

President Biden on Tuesday extended a ban on home foreclosures for federally backed mortgages by three months and expanded a mortgage relief program in a push to stabilize the nation’s housing affordability crisis amid the COVID pandemic.

The foreclosure moratorium was set to expire March 31.

Also, the deadline for applying for forbearance was expanded until June 30, that program also was scheduled to end in March.

As a result of a third action, the federal government will allow borrowers to defer mortgage payments for an additional six months.

There are 11 million federal government-backed mortgages nationwide.

Around 2.7 million homeowners are enrolled in COVID forbearance plans.

FHFA extends moratorium on evictions, foreclosures for two more months

Tuesday’s actions did not address the Centers for Disease Control and Prevention’s federal moratorium on evictions for not paying rent.

That moratorium is also set to expire March 31. About one-third of all Americans, roughly 107 million people, are renters.

The Biden administration has been meeting with stakeholders to assess their next steps on the eviction policy, according to a White House official, but did not offer additional details.

The $1.9 trillion COVID relief bill, is a proposed a $10 billion for a Homeowners Assistance Fund that will provide states with federal assistance to help homeowners with mortgage payments and utility costs.

Fannie Mae and Freddie Mac, last week issued a three-month forbearance extension to borrowers nearing the end of their forbearance plans.

More than 10 million adults live in a household that is not caught up on mortgage payments, according to the Center on Budget and Policy Priorities, citing the U.S. Census Bureau’s Pulse Survey.

Homeowners and renters can learn about available relief options and deadlines at consumerfinance.gov/housing