Foreclosure Moratorium Extended Again
By: Attorney Christine A. Gimber – Weld Riley, S.C.
The Federal Housing Finance Agency (FHFA) announced the prohibition on foreclosures for loans backed by Fannie Mae and Freddie Mac will once again be extended.
The foreclosure moratorium had originally been set to expire on June 30, 2020. However, that moratorium was extended to August 31, 2020 – and has now been extended again. The new expiration date for the moratorium is December 31, 2020.
In its August 26, 2020 press release, FHFA Director Mark Calabria announced the extension stating, “Extending these COVID-19 flexibilities helps keep the mortgage market moving and borrowers safe during the pandemic.”
FHFA regulates Fannie Mae (the Federal National Mortgage Association) and Freddie Mac (the Federal Home Loan Mortgage Corporation). Fannie Mae and Freddie Mac are United States government-sponsored enterprises that make mortgages available to low- and moderate-income borrowers.
If you are struggling to make ends meet due to the impact of COVID-19, reach out to your mortgage lender to ask about programs that may give you temporary relief from your house payments. Most lenders are willing to work with their customers to help them stay in their homes, especially during these unprecedented circumstances. Be mindful, however, that a loan deferral or a loan modification does not mean you won’t have to repay the loan. You will still be required to repay the money you borrowed, but at a later date and without late payment penalties.