FORECLOSURE MORATORIUMS
The vaccine rollout is proceeding, but the economic effects of the pandemic are still being assessed. There is some relief for borrowers whose
mortgages are backed or owned by the federal government. The moratorium
on foreclosures imposed by the Federal Housing Administration (FHA),
Veterans Administration, the U.S. Department of Agriculture (USDA),
Fannie Mae, and Freddie Mac will remain in effect until June 30, 2021.
The bad news is, eventually the mortgages will have to be paid up. While it is not known what the government will do regarding the mortgage arrears, some attorneys are anticipating an avalanche of foreclosure filings which may lead to an avalanche of bankruptcy filings.
Keep in mind, the moratorium is not mortgage relief. Once the moratoriums end, the mortgage arrearage will have to be paid. You may want to call a consumer advocate attorney in your area to see what options you may have.
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