As the coronavirus has put hundreds of thousands of Americans out of work, many are struggling to pay necessary living expenses, including rent and mortgage payments. At the start of the pandemic, many states, as well as the Federal Housing Finance Agency (FHFA) issued a temporary ban on foreclosures and evictions to help alleviate this burden.
This week, the FHFA has announced that they will be extending this ban on foreclosures and evictions through at least August 31.
This federal ban covers mortgages issued by Fannie Mae, Freddie Mac or any other governmental entity housed under the FHFA, which makes up approximately 70 percent of all mortgages nationwide. This ban applies to mortgages backed by these enterprises for single-family mortgages.
For any mortgages funded through other private financial institutions not housed by this federal entity, Gov. Ron DeSantis has issued an executive order extending the state’s suspension of foreclosures and evictions through July 1. It is not determined at this point whether he will extend the suspension again, depending on the status of COVID-19 cases in our state.
These suspensions come at a good time for many Americans. Approximately 46 million American consumers have recently filed for unemployment insurance, related to the COVID-19 pandemic. While the state has been reopening, the job market has been slow to rebound, which means many individuals are still not able to cover basic living expenses.
Unfortunately, many American consumers are still unaware of the relief options available. According to a recent survey conducted by Fannie Mae, approximately 69 percent of those polled were not aware of what steps were taken to halt evictions and foreclosures during this time. Additionally, over 60 percent of mortgage holders said they were also unaware as to whether their mortgage provider offered deferral programs. However, relief is out there for homeowners who request it.
Currently, foreclosures are down, mostly due to the suspension of foreclosure actions and closure of courts during the pandemic. Once the moratorium on foreclosures and evictions is lifted, these will resume. Understandably, the numbers will increase and a backlog of cases in the court system is expected, which could delay proceedings even further.
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Choosing the right attorney can make the difference between keeping your home or losing it in foreclosure. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure, please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com