By: Shahrzad Emami, Esq.
Chief Legal Counsel
MIAMI Association of REALTORS®
If you are a homeowner with a federally backed loan such as through the FHA, VA, USDA, or PIH, your lender and/or servicer may not foreclose on your home until after June 30, 2021. Borrowers who wish to request forbearance also have until June 30, 2021, as the mortgage payment forbearance enrollment window has been extended.
Borrowers who “entered forbearance on or before June 30, 2020” can now be provided up to six months in additional mortgage payment forbearance, which will be given in three-month increments.
Those homeowners with a federally backed loan through Fannie Mae or Freddie Mac, on existing “single-family” mortgages now have foreclosure protection through March 31, 2021. The FHFA also announced the opportunity for eligibility of an additional mortgage forbearance extension of three months for borrowers “with a mortgage backed by Fannie Mae or Freddie Mac.” Extensions that were only available up to twelve months, have been authorized to extend an additional three-months for a total of fifteen months. Only borrowers “who are on a COVID-19 forbearance plan as of February 28, 2021” are eligible for the extension.
Note that these foreclosure moratoriums do not release the borrower from the debt or dismiss pending foreclosure actions.
The Federal eviction moratorium has also been extended until March 31, 2021. The Federal eviction moratorium does not prevent evictions from being filed. Tenants seeking to take advantage of the Federal eviction moratorium must qualify under CDC regulations and also must fill out and submit the CDC Declaration Form, both qualifications and the form can be found at cdc.gov.