BIDEN ADMINISTRATION ANNOUNCES EXTENSION OF FORBEARANCE AND FORECLOSURE MORATORIUM TO JUNE 30, 2021

February 17, 2021

Tampa, FL

On February 16, 2021, the White House released a statement announcing a coordinated extension and expansion of forbearance and foreclosure relief programs by the Department of Housing and Urban Development, Department of Veterans Affairs, and Department of Agriculture.  Foreclosure and forbearance protections previously set to expire in March are now extended through June 30, 2021.  Specifically, the announcement extends the foreclosure moratorium through June 30, 2021; extends the mortgage forbearance enrollment deadline to June 30, 2021; and provides up to six months of additional mortgage payment forbearance (in three month increments) for those who entered forbearance on or before June 30, 2020.[1]

In tandem with the White House statement, the U.S. Department of Agriculture announced an extension of eviction and foreclosure moratoriums on USDA single family housing direct and guaranteed loans through June 30, 2021.[2]  The U.S. Department of Housing and Urban Development issued an extension of their foreclosure and eviction moratorium through June 30, 2021, as special COVID-19 relief for homeowners with FHA-insured single family mortgages.[3]  The Department of Veterans Affairs issued an updated Circular, extending the moratorium on foreclosure and eviction through June 30, 2021 for all properties secured by VA-guaranteed loans.[4]

To date, the Federal Housing Financing Agency has yet to formally announce a moratorium on foreclosure or forbearance that extends through June.  The most recent statement from the FHFA, Fannie Mae, and Freddie Mac was issued February 9, 2021, and extended the moratoriums on single-family foreclosures and real estate owned evictions through March 31, 2021.[5]  Gilbert Garcia Group will continue to monitor the highly fluid landscape of foreclosure, eviction, and forbearance policies and protections, and will share updated information as quickly as possible.  Should you have further questions or concerns related to these issues, please do not hesitate to contact Michelle Garcia Gilbert, Managing Partner.