COVID-19 foreclosure ban for homeowners extended through Aug. 31. But there’s a catch
Citing concerns over the economic impact of the coronavirus shutdown, the Federal Housing Finance Agency (FHFA) has extended the national moratorium on evictions and foreclosures to Aug. 31. The current moratorium was set to expire on June 30.
But there’s a catch. The moratorium only applies to single-family mortgages backed by the Enterprises Fannie Mae and Freddie Mac. The protection includes condo owners.
“To protect borrowers and renters during the pandemic we are extending the Enterprises’ foreclosure and eviction moratorium, said FHFA director Mark Calabria. “During this national health emergency no one should worry about losing their home.”
Many homeowners or landlords who obtained their mortgages through traditional lenders such as banks may not know whether their mortgages are owned or backed by Freddie or Fannie.
Homeowners can check to see if their mortgage qualifies by checking here and here.
Alana Greer, co-director of the legal advocacy firm Community Justice Project, said people who rent their home from a private homeowner should encourage their landlords to see if they qualify.
The FHFA moratorium is separate from the federal CARES Act passed by Congress on March 27. That legislation placed a 120-day moratorium on eviction proceedings and interest fees on late rent in buildings that receive any kind of government subsidy or are part of federally backed VA loans and mortgages.
It also grants renters a 30-day window to respond to eviction proceedings instead of the usual three days. The CARES Act eviction moratorium expires on July 25, which means tenants covered by that law will have until Aug. 25 to respond to an eviction.
Renters can find out if they are covered by the CARES Act here.
This story was originally published June 17, 2020 at 12:01 PM.
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