The Biden-Harris Administration announced June 25th, 2021 through a Press Release that a number of steps to keep people in their homes by protecting renters and homeowners who are still experiencing shocks from the pandemic and its economic fallout. This was announced by the White House that three federal agencies that back mortgages – the Department of Housing and Urban Development (HUD), Department of Veterans Affairs (VA), and Department of Agriculture (USDA) – will extend the moratorium that was set to expire, extending eviction and foreclosure for “one final month” until July 31, 2021.
These efforts are being taken to stabilize homeowners and support a return to a more stable housing market. The foreclosures prevented will include federally-backed mortgages, such as VA, USDA, FHA and HUD loans.
What does this all mean for homeowners?
This means that if you have a mortgage backed by the United States government, your home cannot be foreclosed on until August 1, 2021. In additional to that, the White House is urging states and local courts to participate in eviction diversion efforts. The White House fact sheet remarked that, “HUD, VA, and USDA will take additional steps to prevent foreclosures on mortgages backed by those agencies until borrowers are reviewed for COVID-19 streamlined loss mitigation options that are affordable.”
Throughout this process the White House also made it clear that Fair Housing Act must be followed, “Evictions disproportionately affect communities of color, people with disabilities, women, and other members of protected classes. Tenants with disabilities who are facing eviction are entitled to reasonable accommodations in the eviction process. In some cases, in bringing eviction actions, housing providers may also engage in practices that violate the federal Fair Housing Act. The Department of Housing and Urban Development (HUD) is providing guidance to help prevent Fair Housing Act violations and collaborating with DOJ to publicize this guidance. Landlords and renters can visit hud.gov/fairhousing for details on guidance.”
Forebearance Options Remain Available
In addition, HUD, VA, and USDA will also continue to allow homeowners who have not taken advantage of forbearance to date to enter into COVID-related forbearance through September 30, 2021, while homeowners with Fannie Mae or Freddie Mac-backed mortgages who have COVID-related hardships will also continue to be eligible for COVID-related forbearance. Finally, HUD, VA, and USDA will be announcing additional steps in July to offer borrowers payment reduction options that will enable more homeowners to stay in their homes.
Have questions about Forebearance? Or, in the market for a new home? Connect with one of our experienced lenders today.
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