FHFA Extends Forbearance, Foreclosure and Eviction Moratoriums

Dated: February 11 2021

Views: 19

At-risk homeowners can now postpone mortgage payments (via forbearance) for 15 months. Foreclosure and REO-related eviction bans run until March 31.

WASHINGTON, D.C. – The Federal Housing Finance Agency (FHFA) announced that mortgages held by Fannie Mae and Freddie Mac have extended their moratoriums on single-family foreclosures and real estate owned (REO) evictions until March 31, 2021.

The foreclosure moratorium applies to single-family mortgages and only those backed by Fannie and Freddie. The REO eviction moratorium applies to properties they’ve acquired through foreclosure or deed-in-lieu of foreclosure transactions. The current moratoriums were set to expire on Feb. 28, 2021.

Forbearance

Mortgage borrowers with a loan backed by Fannie Mae or Freddie Mac may also be eligible for an additional forbearance extension of up to three months.

Under forbearance, homeowners financially harmed by the pandemic can postpone payments that can then be paid at the time the home is sold, refinanced or at mortgage maturity. Foreclosures aren’t expected to pick up significantly until forbearance ends, and the government hopes most homeowners in forbearance will be able to return to work before then.

Eligibility for the forbearance extension is limited to borrowers who are already on a COVID-19 forbearance plan as of Feb. 28, 2021, and FHFA says other limits may apply.

With the just announced extension, the COVID-19 Payment Deferral allows borrowers with a Fannie or Freddie-backed mortgage to cover up to 15 months of missed payments.

FHFA projects that the program will cost Fannie and Freddie $1.5 to $2 billion for the COVID-19 foreclosure moratorium and its extension.

© 2021 Florida Realtors® by Kerry Smith

Looking for a Real Estate Agent in South Florida? Be sure to rearch out to Realtor Roxanne Dixon from Dunhill 100 at 561-403-9692 www.realtorinsouthfl.com.

Blog author image

Roxanne Dixon

Highly motivated Real Estate Agent with over 8 years of diverse experience in residential(Purchase/Sale), commercial and investment(Annual Rental, Airbnb, Property Management) estate. Strong analytica....

Latest Blog Posts

Retirees Can Use a Reverse Mortgage to Buy a Home

An “HECM for Purchase Loan” allows adults age 62+ to buy with a larger-than-usual down payment, often with transferred equity, and skip future home payments.WASHINGTON – While most

Read More

Buyers’ Pressure Cooker Eases a Bit as Bidding Wars Drop

A survey of Redfin agents found a slow but steady drop in the percentage of listings engaged in a bidding war. In April, 74.1% of sellers entertained multiple bids; in May it dropped to 72.1%; and

Read More

Buyer Myth: Saying ‘I Do’ Doesn’t Marry Your Credit Scores

What happens to credit scores after you get married? They don’t merge, but joint purchases, such as a house, can help or harm one spouse. After a divorce? That’s tricky.SAN JOSE, Calif.

Read More

New App Is the Airbnb of Private Pool Rentals

A new app allows homeowners with pools to rent them out by the hour – mostly in the $15 to $60 range – and help offset the cost of pool maintenance.ORLANDO, Fla. – It’s a,

Read More