As a response to the COVID-19 pandemic and the financial effects on millions of Americans, President Biden has taken action to alleviate some of the burdens that could cost Americans their homes.
Fort Lauderdale, FL -- (SBWIRE) -- 06/07/2021 -- The Department of Housing and Urban Development, the Department of Veterans Affairs, and the Department of Agriculture announced a coordinated extension and expansion of forbearance and foreclosure relief programs. These programs were previously set to end in March, but now homeowners will receive urgent relief. However, the period will end on June 30, 2021.
Roughly 10 million homeowners are behind on their mortgage payments, making the extension of these programs a relief for many as the plan covers 70% of current single-family home mortgages.
Foreclosure moratorium only applies to enterprise-backed single-family mortgages and properties that an enterprise has acquired through foreclosure or deed-in-lieu of foreclosure transactions.
The recent announcement will extend foreclosure moratoriums for qualifying homeowners and extend the mortgage payment forbearance enrollment period until June 30, 2021. There will be an additional six months of mortgage payment forbearance, coming in three-month increments if a borrower entered forbearance on or before June 20, 2020.
This comes after the Federal Housing Finance Agency, who oversees Fannie Mae and Freddie Mac independent loan agencies, extended forbearance for three months if borrowers were nearing the end of their forbearance period.
Congress is pending the American Rescue Plan, intended to deliver more aid to homeowners, creating the Homeowners Assistance Fund to provide $10 billion to struggling homeowners.
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