When the COVID-19 pandemic began to rage across the U.S. in March of 2020, and the U.S. shut down businesses to try to slow the spread, the country took a big financial hit. People lost their jobs or faced furloughs and found themselves unable to pay their rent or mortgages. It was truly a scary time as people worried about both their physical and financial health.
The worry hasn't ended yet. COVID infections in New York and New Jersey have passed one million and more than 550,000, respectively. Infection rates are still on the rise, and vaccines are only slowly rolling out across the country. Luckily, federal agencies have stepped in to help out homeowners and renters alike.
The CARES Act
On March 27, 2020, Congress enacted needed economic relief for homeowners and renters in the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act prevented renters' eviction in properties with federally backed mortgages through July 27, 2020. Then on September 1, the U.S. Centers for Disease Control and Prevention (CDC) announced a nationwide moratorium on evictions for qualified renters through the end of 2020.
Extended Eviction and Foreclosure Moratorium
As 2020 drew to a close and infection rates, the U.S. Department of Housing and Urban Development (HUD) extended a moratorium preventing evictions and foreclosures of mortgages it insures against default. The moratorium applies to all mortgages backed by the Federal Housing Administration, a division of HUD that guarantees mortgages for many first-time single homebuyers, as well as multi-family properties, residential facilities, and hospitals.
HUD is also extending the time for homeowners struggling financially to seek a reprieve from making their mortgage payments for up to six months. Earlier in December, the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, extended the foreclosure moratorium for mortgages backed by the two behemoth mortgage finance giants through the end of January 2021.
If you're facing a foreclosure in this trying time, the attorneys at the Law Offices of Melvin Monachan, PLLC are here to help. We can advise you on your legal rights and explain your options in this trying time. Call us at (516) 714-5763 to schedule a consultation or contact us online.