(Feb. 19, 2021) The White House this week announced extensions of the moratorium on foreclosures and mortgage forbearance programs that were set to end in March to help provide relief to homeowners with federally guaranteed loans currently in forbearance due to the coronavirus crisis
The changes apply to loans guaranteed by the Department of Veterans Affairs or Department of Agriculture, and those insured by the Department of Housing and Urban Development. More specifically:
- The foreclosure moratorium for homeowners is extended through June 30, 2021;
- The mortgage payment forbearance enrollment window is extended until June 30, 2021 for borrowers who wish to request forbearance;
- Additional mortgage payment forbearance, in two three-month increments, is provided up to six months for borrowers who entered forbearance on or before June 30, 2020.
The announcement was made in conjunction with formal announcements by each of the departments in a coordinated effort to extend and expand upon existing forbearance and foreclosure relief programs. Last week, the Federal Housing Finance Agency (FHFA) said Fannie Mae and Freddie Mac would extend forbearance by three months for borrowers coming to the end of their forbearance period and extend the moratorium on foreclosures for Fannie Mae and Freddie Mac loans to March 31, 2021.