Distressed Homeowners: Compilation of Articles and News on Loan Forbearance, Foreclosure Relief and Other Programs Designed to Keep Families With Economic Hardship in Their Homes
March 23, 2020
Now that many people are experiencing a substantial reduction or total loss of income due to the Coronavirus crisis, the Federal Government is trying to help keep everybody in their homes by initiating foreclosure freezes and loan forbearance options. Bookmark this page, as we will update it constantly as we learn more!
News Release
FHFA Suspends Foreclosures and Evictions for Enterprise-Backed Mortgages
3/18/2020
Washington, D.C. – Today, to help borrowers who are at risk of losing their home, the Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac (the Enterprises) to suspend foreclosures and evictions for at least 60 days due to the coronavirus national emergency. The foreclosure and eviction suspension applies to homeowners with an Enterprise-backed single-family mortgage.
Earlier this month, FHFA announced that the Enterprises would provide payment forbearance to borrowers impacted by the coronavirus. Forbearance allows for a mortgage payment to be suspended for up to 12 months due to hardship caused by the coronavirus.
“This foreclosure and eviction suspension allows homeowners with an Enterprise-backed mortgage to stay in their homes during this national emergency," said Director Mark Calabria. “As a reminder, borrowers affected by the coronavirus who are having difficulty paying their mortgage should reach out to their mortgage servicers as soon as possible. The Enterprises are working with mortgage servicers to ensure that borrowers facing hardship because of the coronavirus can get assistance."
FHFA will continue to monitor the coronavirus situation and update policies as needed.
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HUD No. 20-042
March 18, 2020
HUD PROVIDES IMMEDIATE RELIEF FOR HOMEOWNERS AMID NATIONWIDE CORONAVIRUS RESPONSE
Suspends all foreclosure and evictions for the next 60 days
WASHINGTON - U.S. Department of Housing and Urban Development (HUD) Secretary Ben Carson, in consultation with the Trump Administration and the Coronavirus Task Force, today authorized the Federal Housing Administration (FHA) to implement an immediate foreclosure and eviction moratorium for single family homeowners with FHA-insured mortgages for the next 60 days. These moratoriums are part of the continued effort by President Trump to address impacts to the financial well-being of America’s individuals, families, and businesses caused by Coronavirus (COVID-19).
“Today’s actions will allow households who have an FHA-insured mortgage to meet the challenges of COVID-19 without fear of losing their homes, and help steady market concerns,” said HUD Secretary Ben Carson. “The health and safety of the American people is of the utmost importance to the Department, and the halting of all foreclosure actions and evictions for the next 60 days will provide homeowners with some peace of mind during these trying times.”
The guidance issued today applies to homeowners with FHA-insured Title II Single Family forward and Home Equity Conversion (reverse) mortgages, and directs mortgage servicers to:
Halt all new foreclosure actions and suspend all foreclosure actions currently in process; and
Cease all evictions of persons from FHA-insured single-family properties.
“This is an uncertain time for many Americans, particularly those who could experience a loss of income. As such, we want to provide FHA borrower households with some immediate relief given the current circumstances,” said Federal Housing Commissioner Brian Montgomery. “Our actions today make it clear where the priority needs to be.”
FHA continues to encourage servicers to offer its suite of loss mitigation options to distressed borrowers – including those that could be impacted by the Coronavirus – to help prevent them from going into foreclosure. These include short and long-term forbearance options, mortgage modifications, and other mortgage payment relief options available based on the borrower’s individual circumstances.
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If you are interested in exploring other options (like selling your home, requesting a short sale, etc.) , please give us a call on 843-900-0155.
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