Foreclosure For Sale

Forbearance, foreclosures, and the dangers facing homeowners

The economic peril from COVID-19 has reached nearly every corner of the economy, and the threat of housing insecurity looms ominously on the horizon for millions of Americans. Today we want to focus on the plight of the homeowner, just 12 years removed from the unprecedented 2008 Housing Crisis. In the near-term, temporary measures like stimulus checks, an increase to unemployment insurance, and forgivable small business loans to cover payroll amounted to hundreds of billions of dollars injected directly into the bank accounts of homeowners. For those who lost some or all their income because of COVID-19, these temporary measures provided a lifeline through the spring and summer to continue making mortgage payments. And at the height of the pandemic, many courthouses, where foreclosure notices are be filed, were closed, effectively freezing foreclosure activity entirely. Additionally, on March 18, the Federal Housing Finance Agency (FHFA) enacted a moratorium on foreclosures for borrowers with mortgages backed by Government Sponsored Enterprises (GSE) Fannie Mae and Freddie Mac that has subsequently been extended through the end of 2020, protecting 28 million single-family homeowners. FHFA also allows these borrowers the right to request forbearance for a total of 360 days.