Biden Administration Announces Extension of COVID-19 Protections for Homeowners
Client AlertWritten by: Michael J. Shavel, Esq. and Jill M. Fein, Esq.
On February 16, 2021, President Biden took additional action to extend relief efforts to help homeowners retain their homes during the COVID-19 pandemic. The Biden Administration has extended the existing foreclosure moratorium for homeowners with government-backed mortgages to June 30, 2021. Borrowers can now request forbearance on payments until June 30, 2021, and borrowers who entered forbearance on or before June 30, 2020 are eligible to receive up to six months additional mortgage payment forbearance.
When paired with the Federal Housing Finance Agency’s action taken on February 9, 2021 in extending the moratorium on single-family foreclosures and evictions until March 31, 2021 and offering additional forbearance periods, the Biden Administration estimates that 70% of existing single-family home mortgage-holders are protected from foreclosure and eviction. Notably, homeowners with mortgages in the private market are not able to take advantage of these protections.
If you have questions about this or any other issues, please contact one of our creditors' rights/bankruptcy attorneys.
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