More Help for Homeowners to Avoid Foreclosure
Biden-Harris Administration Actions to Prevent Foreclosures
In addition to the actions to support tenants and landlords, the Biden-Harris Administration also announced efforts to support homeowners.
Three federal agencies that back mortgages –
- the Department of Housing and Urban Development (HUD),
- Department of Veterans Affairs (VA), and
- Department of Agriculture (USDA)
will extend their respective foreclosure moratorium for one, final month, until July 31, 2021.
The Federal Housing Finance Agency (FHFA) will also announce that it has extended the foreclosure moratorium for mortgages backed by Fannie Mae and Freddie Mac until July 31, 2021.
Once the moratoria end, HUD, VA, and USDA will take additional steps to prevent foreclosures on mortgages backed by those agencies until borrowers are reviewed for COVID-19 streamlined loss mitigation options that are affordable, while FHFA will continue to work with Fannie Mae and Freddie Mac to ensure that borrowers are evaluated for home retention solutions prior to any referral to foreclosure.
In addition, HUD, VA, and USDA will also continue to allow homeowners who have not taken advantage of forbearance to date to enter into COVID-related forbearance through September 30, 2021, while homeowners with Fannie Mae or Freddie Mac-backed mortgages who have COVID-related hardships will also continue to be eligible for COVID-related forbearance.
Finally, HUD, VA, and USDA will be announcing additional steps in July to offer borrowers payment reduction options that will enable more homeowners to stay in their homes.