Extension of Foreclosure Moratorium for Certain Federally Backed Loans Until June 30, 2020

Focus on Foreclosure

(The following is for informational purposes only. It is not legal advice. If you want to discuss your personal situation, please make an appointment with me at 561-214-6163 or email me at Malcolm@MEHRealProperty.com)

Yesterday Fannie Mae and Freddie Mac announced that they are extending the moratorium on foreclosures and evictions until at least June 30, 2020.

For the next month and a half, banks with loans backed by one of these government entities will not be allowed to commence new foreclosures, attain final judgments of foreclosure, conduct foreclosure sales, or evict homeowners. 

Shortly after Fannie and Freddie made their announcement, the FHA released an announcement that it is implementing the same policies. (As of the date hereof, we don’t have information about VA Loans.) 

These are great protections for people who are struggling in the midst of this economic and health crisis to save their homes. You shouldn’t have to fight the pandemic and the banks at the same time. 

That said, though, you have to be vigilant about standing up for your rights.

I was just retained by a new client in Jacksonville whose bank took him to court and got a final judgment of foreclosure against him on April 24 even though the CARES Act declared a moratorium on foreclosures between March 18 and May 17. His bank didn’t care about his rights under the new Federal Law.  If he hadn’t reached out to us, he would have lost his home in an illegal foreclosure!

Remember, the protections announced yesterday only apply to loans held by Fannie Mae or Freddie Mac or insured by the FHA. Go to Fannie and Freddy’s websites to look up if your loan is secured by them. If you have any doubts, reach out to us and we will look it up for you. 

The unemployment number in this country right now is unspeakable.  It’s more than just a number, though: It’s a story of hardship for millions of people who have both responsibilities and dreams. Given the current crisis, I wish that I had studied virology at Harvard, but since I studied law, I will continue to contribute by trying to keep you informed about ways to save your homes during this crisis. 

Take care and stay safe.