Certain moratoriums on foreclosures and evictions are due to be lifted by the end of this month. Although the previous deadlines have been extended, it remains to be seen whether, given the increasing spread of the COVID-19 delta variant, another continuation will be granted.
Last month, the Federal Housing Finance Agency announced that state-sponsored corporations (GSE) Fannie Mae and Freddie Mac have extended their Moratorium on Foreclosures and Property Foreclosures (REO) from June 30 to July 31 for homeowners with a GSE-backed single-family mortgage, and the REO’s eviction moratorium only applies to properties acquired by the GSEs through foreclosure or foreclosure deals. The extensions are implemented in Fannie Mae Lender Letter LL-2021-02 and Freddie Mac Guide Newsletter 2021-23.
So is the CDC announced an extension of its current moratorium evictions due to non-payment of the rent by July 31st, whereby it is pointed out that “this should be the final extension of the moratorium”.
Working with the Biden Harris Administration and other federal agencies, the The FHA also extended its foreclosure and eviction moratoriums for all FHA-insured single-family mortgages, excluding vacant or abandoned properties, by July 31st. The FHA also extended the deadline for legal action and reasonable due diligence by 180 days after July 31, 2021 to provide service providers with the additional time it takes to focus their work on helping homeowners in need.
To help homeowners who continue to be at risk of falling behind on their mortgage payments due to COVID-19, the FHA extended the deadline for homeowners to start new deferral plans to September 30, 2021. Homeowners who haven’t before under COVID-19 omission, this may require an interruption or reduction in mortgage payments.
The FHA has introduced the COVID-19 Advance Loan Modification, which offers eligible homeowners significant payment facilities. This new home keep option is for homeowners for whom a 30 year mortgage modification would bring their mortgage up to date and reduce the principal and interest portion of their monthly mortgage payment by at least 25 percent.
To assist seniors with home equity conversion (reverse) mortgages who have been negatively impacted by COVID-19, the FHA is expanding the ability for these homeowners to apply for an extension before the servicer can request the loan to be due and payable. For extension requests received between July 1, 2021 and September 30, 2021, homeowners must grant homeowners an extension of up to six months.
We will keep you informed about further extensions here.