Both government sponsored enterprises (GSEs) have
announced that their nationwide suspension of single-family foreclosures and
evictions has been extended through the end of the year.
The suspension, one of
several relief options Fannie Mae and Freddie Mac originally announced in March
when the COVID-19 national emergency was invoked, has been extended on short
term basis and was most recently set to expire on August 31.

In addition to the suspension, the two companies
continue to allow Their loan servicers to provide up to 12 months forbearance
to households financially impacted by the coronavirus and to waive assessments
of penalties or late fees. Loan modifications will be available to borrowers at
the end of the forbearance period and the companies have provided a menu of
options for borrowers to bring their loans current including deferring any payback
until the loan is paid off, refinanced, or the home is sold.

“The extension of our eviction and
foreclosure moratorium is just one part of the comprehensive assistance we’re
providing borrowers and communities impacted by COVID-19,” said Donna Corley, executive
vice president and head of Freddie Mac’s Single-Family business. “We are
committed to helping families affected by the pandemic, and we have instructed
servicers to work with borrowers who are unable to make their mortgage payments
to ensure they are evaluated for a forbearance plan or other appropriate
assistance
.”

Borrowers are eligible for
forbearance regardless of whether their property is owner occupied, a second
home or an investment property.
The moratorium on evictions is available only for
homes that are owned by one of the GSEs. It does not apply to tenants in homes
that have not been foreclosed.

By Jann Swanson , dated 2020-08-28 11:13:57

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Courtesy of Mortgage News Daily

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