Foreclosures and evictions for mortgages insured by the Federal Housing Administration, Fannie Mae, and Freddie Mac will be suspended for several weeks in response to the coronavirus outbreak.
President Donald Trump announced Wednesday that he had directed the Department of Housing and Urban Development to suspend foreclosures and evictions for mortgages insured through the FHA until the end of April. This will “allow households who have an FHA-insured mortgage to meet the challenges of COVID-19 without fear of losing their homes, and help steady market concerns,” says HUD Secretary Ben Carson. “The halting of all foreclosure actions and evictions for the next 60 days will provide homeowners with some peace of mind during these trying times.”
The Federal Housing Finance Agency also announced that Fannie Mae and Freddie Mac would stop all foreclosures and evictions for at least 60 days.
“This foreclosure and eviction suspension allows homeowners with [a Fannie Mae or Freddie Mac-backed] mortgage to stay in their homes during this national emergency,” said FHFA Director Mark Calabria. “As a reminder, borrowers affected by the coronavirus who are having difficulty paying their mortgage should reach out to their mortgage servicers as soon as possible. The Enterprises are working with mortgage servicers to ensure that borrowers facing hardship because of the coronavirus can get assistance.”
The FHFA also announced recently that borrowers impacted by the coronavirus who have a mortgage backed by Fannie or Freddie will be able to suspend their mortgage payments for up to 12 months.
Source: FHFA and HUD.gov
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