The Federal Housing Finance Agency (FHFA) has announced
that the moratoriums on Fannie Mae or Freddie Mac single-family foreclosures and real estate owned (REO) evictions are extended until “at least” January 31, 2021. The moratoriums, which had been extended
three times previously, were scheduled to expire on December 31, 2020.
The moratoriums do not apply to vacant or abandoned properties or mortgages that are not federally-backed.
As before, guidelines for those single-family mortgages affected by the moratoriums are:
- Homeowners who are adversely impacted by the COVID-19 national emergency may request mortgage assistance by contacting their mortgage servicer
- Foreclosure-related activities (except for vacant or abandoned properties) are suspended until January 31, 2021
- Homeowners impacted by COVID-19 are eligible for a forbearance plan to reduce or suspend their mortgage payments for up to 12 months
- Servicers must report the status of the mortgage loan to the credit bureaus in accordance with the Fair Credit Reporting Act, including as amended by the CARES Act, for homeowners impacted by COVID-19
- Homeowners in a forbearance plan will not incur late fees
- After forbearance, a servicer must work with the borrower on a permanent plan to help maintain or reduce monthly payment amounts as necessary, including a loan modification
For further information on navigating the ongoing eviction moratoriums or any other real estate matters, be sure to contact shareholder Larry Rothenberg
This blog is not a solicitation for business and it is not intended to constitute legal advice on specific matters, create an attorney-client relationship or be legally binding in any way.