What is a Foreclosure Moratorium?
It’s a word we’ve heard frequently throughout the COVID-19 pandemic, but what exactly does it mean, and what should you as a homeowner in Florida know about a foreclosure moratorium?
A foreclosure moratorium is a temporary halt in the initiation or continuation of foreclosure procedures. Moratoriums can be specific to the federal government as well as state and company-imposed.
Florida let its eviction moratorium expire in September of 2020, but President Biden recently extended foreclosure moratoriums for federally guaranteed mortgages through at least June 30, 2021. This applies to federally backed mortgage loans including FHA-insured, VA-guaranteed, and USDA loans. If you are unsure who owns your mortgage or if yours is federally guaranteed, you can find out by reading this post.
As announced by the White House in February, the extension of foreclosure moratoriums for federally guaranteed mortgages does the following:
- Extends the moratorium for homeowners through June 30, 2021;
- Extends the mortgage payment forbearance enrollment window until June 30, 2021 for borrowers who wish to request forbearance;
- Provides up to six months of additional mortgage payment forbearance, in three-month increments, for borrowers who entered forbearance on or before June 30, 2020.
What to do during a foreclosure moratorium
Foreclosure moratoriums are temporary – they won’t delay the foreclosure process forever – so if you’re a Florida homeowner struggling to make payments on your mortgage, now is a good time to consider your alternatives.
Applying for a loss mitigation option, such as forbearance or seeking a loan modification, may help alleviate some financial pressure while you regain your financial footing.
The prospect of losing your home to foreclosure is overwhelming, but our team at Jacobs Legal has your back. Contact us right away for legal advice and help defending your rights.