Our firm is tracking COVID-19 legislation, orders and benefits as they unfold. We are open and actively serving existing and new clients. The CARES Act codified protections for some homeowners against foreclosure and some renters against eviction. We are tracking the legislation passed by Congress yesterday and will provide relevant details after it is signed into law by the President.
FHA-Backed Mortgages:
Yesterday, December 21, 2020, the U.S. Treasury Department announced a two-month extension of the foreclosure and eviction moratorium on FHA loans through February 28, 2021. This is the fourth extension enacted since the pandemic began. The moratorium directs mortgage servicers to halt all new foreclosure actions and suspend all foreclosure actions currently in progress, excluding legally vacant or abandoned properties. It also directs servicers to cease all evictions of persons from FHA-insured residential properties, excluding actions to evict occupants of legally vacant or abandoned properties.
The FHA also has extended the deadline for residential borrowers with FHA mortgages to request initial forbearance through the end of February. FHA single family borrowers can defer or reduce their mortgage payments for up to six months, plus an additional six months if requested. Typically, repayment must begin within 1 year.
What this means for you: If you have an FHA-backed mortgage on your home, your lender/services may not begin or continue foreclosure actions or evictions before February 28, 2021. You have until that date to request forbearance (postponement of payments.)
Fannie Mae and Freddie Mac Backed Mortgages:
Fannie Mae and Freddie Mac also extended their moratoria, but only through January 31, 2021. They have not announced whether they will match the FHA extensions for forbearance.
Renters:
If you are renting a residential property that is financed with an FHA-backed mortgage, the existing COVID-19 evictions moratorium is extended until February 28, 2021. You are still required to submit the CDC Eviction Declaration form. The form and instructions can be found
here. Unfortunately is may not be easy to determine whether the property you are renting is financed with a Federally-backed mortgage. You should promptly communicate with your landlord and get any agreements outside of your lease in writing.
These protections are currently only extended to properties financed by a federally backed mortgage, whether you are a renter or owner. This can be determined by going online here.
Other mortgage lenders and landlords may also provide relief at this time but are not mandated to do so.We understand that this is a stressful and confusing time. We welcome your questions at 239-642-1485 or info@patrickneale.com.
The information provided herein is for informational purposes only and should not be construed as legal advice. The publication of this article does not create an attorney-client relationship between the reader and Patrick Neale & Associates. The reader should not act or refrain from acting based upon the information contained in this article without first contacting an attorney. The hiring of an attorney is a decision that should not be based solely upon advertisements or this article.