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Updated Federal Mortgage Deadlines

*Update 12/28/2020 by Veterans Benefits Administration:

Moratorium on Foreclosure and Eviction. Due to the ongoing COVID-19 national emergency and its
impact on Veteran borrowers, all properties secured by VA-guaranteed loans, including those previously
secured by VA-guaranteed loans but currently in VA’s REO portfolio, are subject to a moratorium on
foreclosure and eviction through February 28, 2021. Except with respect to a vacant or abandoned property,
the moratorium applies to the initiation of foreclosures, the completion of foreclosures in process, and
evictions.
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           FEDERAL MORTGAGE DEADLINES: FORECLOSURE & EVICTION MORATORIUMS; FORBEARANCE/EXTENSION APPROVALS

The CARES ACT provided two benefits (Moratorium & 180-day Forbearance/Extension) for homeowners with “federally related” mortgage loans.  Federally related loans are home mortgages backed, indirectly or directly, by the US federal government. 

Indirect: Fannie Mae and Freddie Mac mortgages are indirect federal loans.  Fannie and Freddie are called Government Sponsored Entities (GSEs) and are regulated by the Federal Housing Finance Agency (FHFA).  Note: FHFA is a different entity than Federal Housing Administration (FHA), which is part of the department of Housing and Urban Development.

DirectFHA, USDA, or VA are direct mortgages. 

If you are struggling to pay your mortgage, it is important to know the loan type you have, because the options and timelines vary.  If you need help to determine your loan type, call SCLO (Paul Spear, 505.322.8345).

Federal Moratoriums apply to Foreclosures and Evictions like a blanket over the entire loan type (Fannie Mae, Freddie Mac, FHA, USDA, or USDA).  During a federal moratorium, a lender cannot file a new foreclosure or continue prosecuting an existing foreclosure (unless the house is vacant or abandoned), and a lender cannot start or continue prosecuting an existing eviction. 

  •  180-day Forbearance/Extensions are granted by the Lender on a loan by loan basis.  Regular mortgages (Forward) are granted a 180-day Forbearance, where the Lender agrees to forbear/delay collecting installments otherwise due.  On the other hand, Reverse mortgages, which have no scheduled payments, are granted a 180-day “Extension” of time during which the lender will delay prosecuting a foreclosure.  Homeowners can request one additional 180-day renewal during the initial 180-day Forbearance/Extension.  Each loan type sets its own deadline for granting its initial Forbearance/Extension.

 FHFA: (Federal Housing Finance Agency) Fannie Mae and Freddie Mac (the Enterprises) single-family mortgages only.

Foreclosure/Eviction Moratorium is extended through January 31, 2021.  (updated Dec 2, 2020)  .  https://www.housingwire.com/articles/fhfa-extends-foreclosure-and-eviction-moratorium-to-jan-31/

Initial approval of Forbearance/Extension must be approved before January 31, 2021.   (updated Dec 2, 2020) .  https://www.housingwire.com/articles/fhfa-extends-foreclosure-and-eviction-moratorium-to-jan-31/

FHA: (Federal Housing Authority) This applies to all FHA Title II single family forward mortgage and Home Equity Conversion Mortgage (reverse mortgage) programs, except those secured by vacant and/or abandoned properties. Visit the FHA INFO Archives to access FHA INFO messages issued from 2012 to the present.

Foreclosure/Eviction Moratorium extended through February 28, 2021 (updated 12/21/20).  https://www.hud.gov/press/press_releases_media_advisories/HUD_No_20_214

Initial approval of Forbearance/Extension: Before February 28, 2021 (updated 12/21/20).  https://www.hud.gov/press/press_releases_media_advisories/HUD_No_20_214

USDA:  (United States Department of Agriculture)  Single Family Housing Direct and Guaranteed Programs: except those secured by vacant and/or abandoned properties.

Foreclosure/Eviction Moratorium extended through February 28, 2021 (updated 12/21/20).  https://www.rd.usda.gov/coronavirus

Initial approval of Forbearance/Extension: Before February 28, 2021 (updated 12/21/20).  https://www.rd.usda.gov/coronavirus

VA: (Veterans Administration) https://www.benefits.va.gov/homeloans/resources_circulars.asp (updated 8/24/2020)

VA-guaranteed loans are subject to a Foreclosure moratorium through December 31, 2020. (updated 8/24/2020) https://www.benefits.va.gov/HOMELOANS/documents/circulars/26-20-30.pdf

An Eviction moratorium is in effect until December 31, 2020. (updated 8/24/2020) https://www.benefits.va.gov/HOMELOANS/documents/circulars/26-20-29.pdf

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FEDERAL MORTGAGE DEADLINES: FORECLOSURE & EVICTION MORATORIUMS; FORBEARANCE/EXTENSION APPROVALS

FORECLOSURE MORATORIUMS EXTENDED TO DECEMBER 31, 2020

Existing foreclosure moratoriums have been extended to at least December 31, 2020.  The current moratoriums were set to expire on August 31, 2020. This is the third extension of the foreclosure and eviction moratoriums since March 18, 2020.

FHA: (Federal Housing Authority) This applies to all FHA Title II single family forward mortgage and Home Equity Conversion Mortgage (reverse mortgage) programs, except for those secured by vacant and/or abandoned properties. Visit the FHA INFO Archives to access FHA INFO messages issued from 2012 to the present.

FHFA: (Federal Housing Finance Agency) This applies to Fannie Mae and Freddie Mac (the Enterprises) single-family mortgages only.   The eviction moratorium applies to real estate owned (REO) evictions until at least December 31, 2020.  The REO eviction moratorium applies to properties acquired through foreclosure or deed-in-lieu of foreclosure transactions. https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Extends-Foreclosure-and-REO-Eviction-Moratoriums.aspx

*VA: (Veterans Administration)   Properties secured by VA-guaranteed loans are subject to a moratorium on foreclosure through February28, 2021. The moratorium applies to the initiation of foreclosures, and to the completion of foreclosures in process. https://www.benefits.va.gov/homeloans/resources_circulars.asp

USDA:  (United States Department of Agriculture)  Single Family Housing Direct and Guaranteed Programs: Effective August 28, with the exception of vacant or abandoned dwellings, foreclosures and related evictions for borrowers with USDA single family housing Direct and Guaranteed loans are suspended through December 31, 2020.  https://www.rd.usda.gov/coronavirus

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