What Happens At End Of The Foreclosure Moratorium
Q: How long will the foreclosure moratorium last? Eileen, Palisades Park, NJ
A: The foreclosure moratorium had been set to expire at the end of June and was extended through the end of August–it certainly can and may be extended again.
At present, the moratorium on evictions and foreclosures seems to be having their intended effect. Foreclosure filings are currently at their lowest rate in 15 Years. The FHFA oversees Fannie Mae and Freddie Mac, as well as the 11 Federal Home Loan Banks. Together, these entities provide more than $6.4 trillion in aggregate funding for U.S. mortgage markets and financial institutions.
Over 50 million Americans have filed for unemployment so far. Though new jobless claims have been slowing, the unemployment rate is still over 16% nationally, with some states facing unemployment rates of over 20%.
Millions of people unfortunately remain unaware of relief programs created to help renters and mortgage holders. Data from a recent Fannie Mae survey indicated that more than two thirds of respondents were unaware of steps taken in response to the coronavirus pandemic to temporarily halt foreclosures and evictions and more than half of mortgage holders were unaware of whether their lender offered deferral programs.
When the foreclosure moratorium is lifted, lenders will decide how fast to pursue delinquent mortgage borrowers, which will have a ripple effect throughout residential real estate creating a surge of work for real estate lawyers, process servers and courts.
Thanks for your question, Eileen.
For more real estate tips and information visit my blog at geraldlucas.com.