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The FHFA extended foreclosure and eviction bans to June 30. Therefore, homeowners with mortgages by Fannie Mae or Freddie Mac can’t be evicted. The same applies to renters in buildings acquired by these lending giants. Furthermore, forbearance was also extended, allowing owners to skip mortgage payments for 18 months.
Fannie Mae and Freddie Mac are two massive mortgage lenders that own over half of all U.S mortgages. The lending giants have extended their foreclosure and eviction bans on single-family homes and real estate owned (REO) evictions. The REO eviction applies only to properties acquired by Fannie and Freddie. The extension changed from March 31, 2021, to June 30, 2021.
Furthermore, FHFA also announced that homeowners who borrowed with a Fannie or Freddie might be elegible for an additional extension of Covid-19 forbearance. This allows homeowners to forego mortgage payments for a specific amount of time. Once this period ends, the homeowner has the option of paying back the full amount owned, tack the missed payments for the end of their mortgage period, or pay the money back when the house is sold. The extension now allows borrowers to be in forbearance for up to 18 months.
The FHFA continues to monitor the effects of Covid-19 and makes decisions based on updated data and health risks. Therefore, FHFA reserves the right to cancel the ban if the pandemic improves, or extend them past June 30 if necessary.
Read more: https://www.floridarealtors.org
