On February 25, 2021, the Federal Housing Finance Administration (FHFA), an independent federal agency that oversees Fannie Mae and Freddie Mac, announced that it is extending its moratorium on residential foreclosures through June 30, 2021. The extension is in line with the extension of the moratorium for federally backed residential mortgages (loans insured by HUD, VA and USDA) that was announced earlier this month by the Biden Administration. As with the extension on federally backed loans, the FHFA moratorium was scheduled to expire on March 31, 2021.
In addition to extending the moratorium on foreclosures, FHFA is also offering an additional 3-month forbearance, which is in addition to the 3-month extension that was announced earlier this year. This will enable borrowers to be in a forbearance for 18 months, and possibly defer the 18-months of payments until maturity or the loan is refinanced.
If you have any questions or concerns about these moratoriums, or any other matters related to creditor’s rights, please do not hesitate to reach out to one of the attorneys at Sorenson Van Leuven, PLLC.