Foreclosure Moratorium Extended through Jan. 2021

Dated: December 16 2020

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The Federal Housing Finance Authority (FHFA) announced on Dec. 2 that Fannie Mae and Freddie Mac (the Enterprises) will extend its single-family foreclosure and real estate owned (REO) eviction moratorium through Jan. 2021—rather than December 31. The Fannie Mae ad Freddie Mac purchased loans refer to conventional mortgages and REO evictions refer to properties that have been acquired by an enterprise through foreclosure or deed-in-lieu of foreclosure transactions. Director of the FHFA, Mark Calabria, explained “Extending Fannie Mae and Freddie Mac's foreclosure and eviction moratoriums through January 2021 keeps borrowers safe during the pandemic," according to the FHFA news release.  Calabria added that his extension can benefit as many as 28 million homeowners, who have mortgages guaranteed by Fannie Mae and Freddie Mac.

 

While this provides another month reprieve, and there may even be another moratorium extension through a second Congressional stimulus package, or even a new Act passed under the President-Elect Biden’s Administration, it is important for borrowers affected by Covid-19 to keep The Consumer Financial Protection Bureau (CFPB) advice in mind.  CFPB points out on their website, that “If you currently have a forbearance on your mortgage because of the coronavirus pandemic, ... you’ll have to pay back the mortgage payments your mortgage servicer has allowed you to reduce or pause.”  Fortunately for borrowers, the lender will typically work with you to develop options to pay-off the outstanding balance.  If you need assistance working with your lender, as a certified housing counselor, I can help you navigate the process.  You may reach me at 678.227.4994.

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Dawn Robertson, SRS, MBA, PMP

Thank you for checking out my bio page. I hold a Seller Representative Specialist (SRS) designation granted by the Real Estate Business Institute (REBI), which means I have advanced training in advoc....

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