Foreclosure Moratorium Extended To August 31, 2020
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 be extended to “at least” August 31, 2020. The moratorium had been set to expire on June 30, 2020.
FHFA Director Mark Calabria announced the extension noting, “During this national health emergency no one should worry about losing their home.” The moratorium applies only to single-family homes.
At the start of the pandemic, Fannie Mae and Freddie Mac offered homeowners various types of assistance for those struggling to make their mortgage payments. The assistance included agreements to defer loan payments and to modify loan payments.
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.