Moratorium on Evictions and Foreclosures Has Been Extended to the End of the Year

 Posted on September 14, 2020 in Real Estate Law

Connecticut families, like the rest of the country, have been deeply affected by the COVID-19 pandemic. Many individuals have had their work hours significantly reduced while others were laid off permanently. Parents have had to find alternative childcare or were forced to stay home from work to watch their children. The financial implications of this virus continue to be wide-reaching. Fortunately, the federal government has taken steps to alleviate at least some of the financial stress caused by the lockdowns. The Federal Housing Finance Agency (FHFA) recently announced extended suspensions on real estate owned (REO) evictions and single-family foreclosures.

Financial Relief for Homeowners

The COVID-19 pandemic has reduced the financial resources of millions of families throughout the United States and across the globe. Many Americans have spent sleepless nights worrying about being unable to pay their bills and losing their homes due to foreclosure. Some even feared homelessness. In response to the significant financial harm caused by the pandemic and associated lockdowns, both state and federal government agencies have instituted changes designed to provide financial relief.

Extended Suspension of Foreclosures and Evictions

Earlier this year, the U.S. Department of Housing and Urban Development (HUD) declared a cessation on single-family home foreclosures. The Federal Housing Financial Agency (FHFA) followed suit shortly afterward and ordered Fannie Mae and Freddie Mac to temporarily freeze foreclosures. These moratoriums were originally set to expire at the end of August. Fortunately, the FHFA has extended the foreclosure and eviction moratoriums until December 31, 2020. The foreclosure suspension only applies to single-family mortgages that are backed by the Federal National Mortgage Association and the Federal Home Loan Mortgage Company. The real estate owned eviction moratorium applies to Enterprise-acquired properties that were obtained through foreclosure or deed-in-lieu of foreclosure transactions. This extension is expected to protect more than 28 million homeowners from foreclosure and eviction.

Most private lenders are following the example set forth by the federal government and are not pursuing foreclosures during the moratorium. However, it is important to verify your lender’s current policy regarding foreclosures.

Contact a Fairfield County Real Estate Lawyer

The legal professionals at the Law Offices of Daniel P. Weiner have over 40 years of experience representing clients across Connecticut. We understand that the COVID-19 situation is constantly changing and that residential real estate transactions will continue to be affected. We are committed to staying well-informed about government relief programs so that we can continue to offer dependable legal advice and support to clients. To learn more about how our firm can help you with your real estate needs, call our office at 203-348-5846. Schedule a free initial consultation with accomplished Stamford real estate attorney Daniel P. Weiner today.

Source:

https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Extends-Foreclosure-and-REO-Eviction-Moratoriums.aspx