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.
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