The Federal Housing Finance Agency extended its moratorium on foreclosures and evictions for borrowers with mortgages backed by Fannie Mae and Freddie Mac until Jan. 31.
FOR IMMEDIATE RELEASE8/27/2020
Washington, D.C. – Today, to help borrowers at risk of losing their home due to the coronavirus national emergency, the Federal Housing Finance Agency (FHFA) announced that Fannie Mae and Freddie Mac (the Enterprises) will extend the moratoriums on single-family foreclosures and real estate owned (REO) evictions until at least December 31, 2020. The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only. The REO eviction moratorium applies to properties that have been acquired by an Enterprise through foreclosure or deed-in-lieu of foreclosure transactions. The current moratoriums were set to expire on August 31, 2020.
“To help keep borrowers in their homes during the pandemic, FHFA is extending the Enterprises' foreclosure and eviction moratoriums through the end of 2020," said Director Mark Calabria. “This protects more than 28 million homeowners with an Enterprise-backed mortgage."
Currently, FHFA projects additional expenses of $1.1 to 1.7 billion will be borne by the Enterprises due to the existing COVID-19 foreclosure moratorium and its extension. FHFA will continue to monitor the effect of coronavirus on the mortgage industry and update its policies as needed. To understand the protections and assistance offered by the government to those having trouble paying their mortgage, please visit the joint Department of Housing and Urban Development, FHFA, and the Consumer Financial Protection Bureau website at cfpb.gov/housing.
Week two update on the Coronavirus and your mortgage payments. Good news for many. the others we are here to help.
COVID 19 and your rent. Here are the latest FACTS and what we are telling our rental clients to do.
We continue to tell clients that If you have been laid off or have reduced hours due to Corona virus, call your Landlord, tell them the situation and let them know the rent will be late. They CANNOT evict you.
Citigroup, JPMorgan Chase, U.S. Bank, Wells Fargo, and Bank of America, in addition to over 40 other federal and state-chartered banks, credit unions, and servicers to protect New Jersey homeowners. More financial institutions are expected to sign on in the coming days.
With the new FEMA Emergency Declaration: New Jersey Covid-19 Pandemic (DR-4488), additional Federal Disaster funds will be made available to the state and this move COULD include funds to help Renters and Homeowners.
Many financial institutions have announced they will temporarily halt
foreclosures and evictions during the crisis and provide grace periods for
• Wells Fargo
• US Bank
• Bank of America
• Fifth Third
• JP Morgan Chase
• And more…
Contact your financial institution to get the most up-to-date information
on how they can assist.
The bill passed by both houses and on the way to the White House allows borrowers with federally backed mortgages who have a financial hardship directly or indirectly from the coronavirus pandemic to request forbearance.
Borrowers can postpone mortgage payments for 180 days without incurring fees or penalties. And they can request to extend that forbearance for another 180 days.
This is not loan forgiveness. The missed mortgage payments would still be owed eventually, likely by extending the duration of the loan.
Here are the latest FACTS and what we are telling our housing clients to do
We continue to hear from clients that the mortgage companies phone are very busy and hold times very lengthy. However. keep trying, only a servicer can offer a forbearance for your payment.
If you have been laid off or have reduced hours due to Corona virus, call your servicer, you can find the number on your mortgage statement.
Most servicers are offering 1-12 month forbearances. The federal government has recommended that they do just that. HUD and the FHFA who supervise Fannie Mae and Freddie Mac have directed their servicers to offer these options. That makes up about 65% of all loans outstanding. The other 35% should follow their direction.
However, these payments do NOT go away; payments will be put on the end or have to be repaid in the course of a couple of months. If your ability to pay was already stressed and the added repayment is too much, you may have to apply for a modification.
If you are in the middle of a foreclosure you should call us today. You have some reprieve from foreclosure, but your foreclosure is STILL active. While NJ’s Governor has stopped evictions as the result of a foreclosure proceeding, and the government insurers (Fannie Mae, Freddie Mac and HUD) are suspending foreclosures through April 30th, you are still in foreclosure that has not changed.
Call 888-738-8233 and we can answer your mortgage payment questions. .
Mediation can save a home from foreclosure, yet many homeowners enter the foreclosure process with their mortgage lender without an understanding of the type of relief that may be available to them. CCBC is there to help you navigate the Foreclosure Mediation Program, and the service is FREE.
A loan modification, which can make it easier to stay on top of mortgage payments and avoid foreclosure.
Do you have questions on what a forbearance is and how it works, we have the answers
Renters can receive full budget and credit counseling with a credit review to make any transitions easier, landlord advocate/eviction diversion services, or relocation services if necessary.
If you have a question about your mortgage, the payments, forbearance or anything at all, please call our trained and experienced counselors at 888-738-8233
We will publish the latest on mortgage issues during this pandemic.