President Joe Biden instructed federal housing regulators A move to cover an estimated 70% of U.S. single-family home mortgages will extend the mortgage grace program for another six months and extend the foreclosure bailout program on Tuesday
As the latest The Covid-19 Relief Package continues on its path Through the parliamentary legislative process, Biden ordered the Department of Housing and Urban Development, the Department of Veterans Affairs, and the Ministry of Agriculture to extend the foreclosure moratorium and tolerance program.
Specifically, the regulators are set up as follows:
- The foreclosure ban will be extended until June 2021.
- Allows homeowners to enroll in a mortgage deferral program until June 2021.
- For those who have already participated in the mortgage payment program before June 30, 2020, we will extend the grace program for another 6 months. Homeowners must request an extension every three months.
“As President Biden revealed, there is an urgent need to help homeowners across the country who are financially suffering from this unprecedented state of emergency,” said HUD Deputy Secretary Matthew Ammon. .. Said in a statement.. “The steps we are taking today provide immediate relief to those in desperate need, and more homeowners will maintain their homes and resume payments when the pandemic subsides. Helps you. “
In addition to the directive issued by Biden on Tuesday Fannie Mae and Freddie Mac moved last week Extend their tolerance and foreclosure programs. The new terms will suspend the foreclosure of single-family homes and the eviction of real estate ownership (REO) until March.
According to the Federal Housing Finance Agency, those with Fannie Mae and Freddie Mac mortgages enrolled in the Covid-19 Tolerance Program as of February will be deferred for another three months. Will be. This means that anyone with these federal-backed mortgages can defer payments for up to 15 months.
For federal mortgages, loans from the following agencies are eligible for relief:
If you don’t know who owns the loan, Fannie Mae And Freddie Mac It provides a loan search tool to help you quickly determine if any of these major lenders own your loan. You can also ask the servicer at any time and view the loan documents.
In addition, the Consumer Financial Protection Bureau Find a counselor toolProvides a list of counseling agencies to help you advise on loan terms, credit issues and foreclosures.
Initially, The CARES Act provides for a one-year postponement of mortgage payments For homeowners with federally backed loans. According to Greg McBride, chief financial analyst at Bankrate.com, that was considered sufficient at the time, but the pandemic and its economic consequences have been much longer than expected.
“Extending the grace period available for federally-backed mortgages will help maintain the homes of millions of households that have experienced pandemic income disruptions and total unemployment,” McBride said in a statement Tuesday. It’s a very important move. “
Mortgages owned by private lenders such as banks are not included in this remedy. Biden’s proposed relief package is also $ 10 Billion Homeowner Support Fund It will allow the state to help all homeowners with mortgage payments and utility bills.
According to the latest report, about 2.7 million homeowners are currently planning some tolerance. Quote from Mortgage Bankers Association.. Most of them are mortgages owned by private lending services, not federal loans.
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Homeowners can now defer mortgage payments for another 6 months — here’s how to check if they’re covered – NBC10 Philadelphia
Source link Homeowners can now defer mortgage payments for another 6 months — here’s how to check if they’re covered – NBC10 Philadelphia