HUD Extends Foreclosure and Eviction Suspensions
In March 2020 when the coronavirus “stay-at-home” and “shelter-in-place” orders originated, Fannie Mae, Freddie Mac and HUD announced they would postpone all evictions for 60 days.
It is now mid-May and unfortunately many American’s are still unable to return to work. The future of the economy is uncertain while some states are continuing the stay at home orders.
“Today, to help borrowers and renters who are at risk of losing their home due to the coronavirus national emergency, the Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac are extending their moratorium on foreclosures and evictions until at least June 30, 2020”, the The Federal Housing Finance Agency announced.
The FHA also introduced another repayment option for homeowners deferring loans due to coronavirus. With the new option, payments will be paused for 180 days, with an option of an additional 180 days after the initial period ends. The total deferred amount will be due at the end of the loan all at once. For example, if it is a 30 year loan the term will remain only 30 years, then the 180 or 360 day deferred payment will all be due at the end of the 30-year period.
More than 8.1 million borrowers have an FHA-backed mortgage.