Back in June 2021, the Biden administration extended the foreclosure moratorium for renters until the end of July with the hopes of helping state officials better distribute $46 billion in federal aid. The foreclosure moratorium did not extend past July 31, 2021, as the United States Supreme Court determined the Biden administration did not have the power to do so any further. As of August 1, 2021, more than 1.75 million homeowners were still in forbearance on their mortgages, and over ten million renters were facing eviction.
What Comes Next?
Now that the moratorium has officially ended, the expectation is for foreclosure proceedings to begin in earnest in September 2021. Luckily, in mid-July, the White House announced they had a plan. The Department of Housing and Urban Development and several other federal agencies attempted to give homeowners a 25% reduction in their monthly principal and interest payments. They also stipulated that they would continue to encourage mortgage companies to allow homeowners who can restart their mortgage payments the option to move their missed payments to the end of the mortgage term without acquiring additional costs. Additionally, for homeowners whose income has decreased during the pandemic, the federal agencies will be offering assistance to help them find work in the hopes that they will be able to catch up on back taxes and insurance.
How A Skilled Real Estate Attorney Can Help
Working with a knowledgeable real estate attorney is crucial if you or someone you love is facing a foreclosure because of the pandemic. Real estate attorneys have specialized knowledge and can help mitigate the unfair consequences of missed mortgage payments due to the pandemic. You have rights, and Attorney Melvin Monachan can help. Attorney Monachan has years of experience helping his clients navigate real estate ventures like residential and commercial closings, as well as loan modifications and foreclosure defense. He can help explain your options clearly and strategize a defense with the best possible outcome for your situation. Call 347-389-1682 today to schedule a consultation or schedule one online. You don't have to face foreclosure alone.