FORECLOSURE AND REO EVICTION MORATORIUMS EXTENDED

By
Education & Training with Consulting Group INC/ Short Sale Negotiation Company

Some federal foreclosure and eviction moratoriums are being extended through the end of this year. The intent is to keep homeowners and renters in their homes that have fallen victim to the financial crisis resulting from the coronavirus pandemic.  Only Fannie or Freddie backed, single-family mortgages are affected by this freeze.

 

The hold on evictions applies only to homes owned by Fannie or Freddie and does not apply to tenants in homes that have not been foreclosed.  As of now, tenants who are not paying their rent because of the pandemic-created hardship, can’t be evicted until September 1, 2020.  This, of course, is subject to change.

 

The moratorium extension doesn’t relieve the homeowner of responsibility for their mortgage however, many people are sure to take advantage of this.  Once the moratorium is lifted, you can bet things will move VERY QUICKLY and there will be a backlog of Pre-Foreclosures reminiscent of the 2009 Housing Crisis.

 

References

CNN.com

DS News

FloridaRealtors.org

Comments (1)

Adam Feinberg
Elegran - Manhattan, NY
NYC Condo, Co-op, and Townhouse specialist

In NYC evictions and foreclosures are frozen across the board- not limited to Fannie/Freddy (which is a small portion of the Manhattan market anyway- for homeownership loans are largely portfolio lending). I have mixed feelings about this due to the extreme duration in which foreclosures or evictions take place in a normal market- let alone this environment. I just had the unfortunate responsibility of foreclosing on a neighbor in my capacity as President of my condo board. It took 11 years and 3 days from initial default until we had ownership of the apartment...and the only aspect of the case that was ever in question was the amount of the legal fees. The owner voluntarily left on Feb 1 2020. Had she decided to fight us to the point of needing a sheriff's eviction- she would have been able to remain in place for years longer. In a normal year, it could take up to a year to evict someone here due to the courts...but now- it could be 2 or more years and that assumes we can resume the process come Jan 1 2021. As it was, the foreclosure balances exceeded $350,000...but would have been untenable for a small building like mine to endure additional years of someone not paying their monthly common charges (similiar to HOA fees elsewhere- but it also includes things like heat and water, etc).

I have a heart, and don't want to be throwing people out of the street, but continuing to postpone a long and difficult system to navigate is unrealistic as well.

Sep 30, 2020 10:49 AM
Adam Feinberg

Seperately- my parents live in Longwood.

Sep 30, 2020 10:51 AM