Monday, February 22, 2021

Extended Foreclosure Moratorium Will Help Homeowners

While one of President Biden’s first executive orders was to extend the foreclosure moratorium until the end of March, it is important for homeowners who are at risk of foreclosure to know that the moratorium has been further extended. According to a recent CNBC report, government mortgage forbearance programs have been extended for at least “an additional six months” along with foreclosure relief programs. According to the report, the extension will cover approximately 70% of mortgages for single-family homes across the country. If you have lost your job as a result of the COVID-19 pandemic and you are concerned about the possibility of foreclosure, it is critical to learn about your current options under the federal programs and to seek long-term advice from an Oak Park foreclosure defense attorney about options to help you stay in your home.

Details of the Extended Foreclosure Relief Measures

Recognizing that homeowners throughout the U.S. are struggling to pay their bills, including their mortgages, as a result of the pandemic-related economic downturn, President Biden extended foreclosure relief measures to help homeowners who cannot pay their mortgages and may be at risk of foreclosure. According to the report, President Biden directed federal housing regulators—including the Department of Housing and Urban Development, the Department of Veterans Affairs, and the Department of Agriculture—to do the following:
  • Extend the existing foreclosure ban (also known as a foreclosure moratorium) through June 2021;
  • Allow homeowners to enroll in available mortgage payment forbearance programs through June 2021; and
  • Extend existing mortgage forbearance programs for homeowners for six more months for those homeowners who entered into a mortgage forbearance program prior to June 30, 2020, but those homeowners will need to “request the additional extension every three months,” according to the report.
Matthew Ammon, the acting HUD secretary, explained how these steps “will provide both immediate relief to those in desperate need of assistance and help more homeowners keep their homes and resume their payments when the pandemic subsides.”

Who Owns Your Mortgage?

It is important to know that the relief options are only applicable to federally owned and federally backed mortgages. As such, if you want to take advantage of any of the relief options, you will need to know who owns your mortgage. Given that mortgages are often sold and resold with some regularity, it can be difficult to know if you are eligible for any of the programs mentioned above. How can you find out who owns your mortgage?

You can use a loan lookup tool offered by Fannie Mae and Freddie Mac to determine if either owns your loan, and you can also contact your mortgage servicer to inquire. As of February 2021, approximately 2.7 million homeowners are currently taking advantage of a mortgage forbearance plan, whether it is through the federal government or through a specific mortgage servicer or lender.

Seek Advice From an Oak Park Foreclosure Defense Attorney

If you need help with your options to avoid foreclosure, one of our experienced Oak Park foreclosure defense attorneys can speak with you today. From available foreclosure moratorium options to the possibility of Chapter 13 bankruptcy, our firm can discuss options for stopping foreclosure and remaining in your home. Contact the Emerson Law Firm to learn more.

See Related Blog Posts:

Foreclosure Ban Extended

Cook County Anticipates Wave of Foreclosures and Evictions