The moratorium was previously extended until August 31, 2020, but now it is extended through December 31, 2020.
While this moratorium currently only impacts mortgages insured by the Federal Housing Administration (FHA), Fannie Mae and Freddie Mac, this encompasses the majority of homeowners.
The moratorium is for single-family mortgages, but they do not need to be owner-occupied. It also extends the eviction moratorium for residents of real estate owned (REO) properties. However, the eviction moratorium does not cover tenants facing eviction due to an inability to make payments.
Fannie Mae and Freddie Mac have also asked servicers to offer additional relief to homeowners, in the form of:
providing forbearance for up to 12 months;
waiving assessments of penalties or late fees;
offering loan modification options; and
allowing a payment deferral solution in which deferred payments will be due at the end of the loan (rather than at the end of the forbearance period).
Delaying the inevitable foreclosure wave
The moratorium extension will keep homeowners housed through the end of the year, at least. This will undoubtedly help 2020’s housing market and economy, but it also just pushes off the inevitable.
2020’s underlying recession, complicated and worsened by the global pandemic, has caused historic job losses across the nation. Until jobs and incomes are restored — which will not occur before year’s end when the new moratorium expires — there will be millions of residents unable to make their housing payments. This jobs recovery isn’t likely to begin in a stable and consistent fashion until 2022-2023.
Here is an excellent updated video outlining the Mortgage Forbearance Options under the CARES Act from the Consumer Financial Protection Bureau. Note it isn’t too late!!!
For more information, please contact the experienced bankruptcy attorneys at The Wallace Law Group with a convenient office location in Boynton Beach representing clients in Boynton Beach, Delray Beach, Boca Raton, West Palm Beach, Greenacres, Wellington, Fort Lauderdale, Coral Springs, Deerfield Beach, Parkland, Hollywood, Weston, Aventura, Miami, Miami Beach.The Wallace Law Group, PL.
On April 3, 2020, in response to the COVID-19 pandemic, Florida Governor Ron Desantis signed Executive Order 20-94 which halted all Foreclosure Actions and Residential Tenant Eviction Actions for Non-Payment of Rent for 45 days.
Many clients and prospective clients contact us and ask common questions based on advice from their relatives or a “friend of a friend.” These blog entries will dispel common myths and educate you on the general process of bankruptcy in Florida.
QUESTION: Will I lose my Home if I file Bankruptcy in Florida?
There are two types of consumer bankruptcy: Chapter 7 (Liquidation) and Chapter 13 (Reorganization for Wage Earners). One of the benefits of consumer bankruptcy is that it allows extraordinary relief that cannot be accomplished outside of bankruptcy.
Chapter 7 Bankruptcy
First, Florida allows an unlimited exemption for your homestead property which allows you to protect from creditor (and Bankruptcy Trustee) claims.