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.
This Blog Post will provide 5 Tips to Purchasing a home in Florida provided to you by our Florida Bar Board Certified Attorney Steven Wallace, Esq.
Tip#1-Hire the Right Agent
Before you start going crazy looking at homes for sale in Florida on Zillow and Trulia, take a step back and hire an experienced real estate agent for the particular area that you are looking. Not everything has to be purchased over the internet and your new home certainly shouldn’t be one. Realtors have access to the most up-to-date listings and some that may not be featured on websites. They also might provide a lot of insight into options for your new home.
Tip#2–Consult with an Attorney
Once you have found your new dream home, you are ready to submit an offer to the property’s owner. Purchasing a new home is often the largest financial decision/obligation a person does in their lifetime. Although real estate agents are generally very knowledgable about your transaction, understanding all of the legal and financial terms of Florida real estate are overwhelming for even the most astute person. As such, it is always a good idea to have a knowledgable real estate attorney review your offer before it is signed or have the offer subject to your attorney’s review.
Tip#3–Always Hire a Property Inspector
Another major mistake that many parties make in purchasing real estate is that fail to have a property inspection conducted. A property inspector can often find repair issues that are not visible to the naked eye.
Tip#4–Understand All of the Costs of Homeownership (a/k/a Don’t be House Poor)
In addition to our firm’s vibrant real estate practice, we represent many clients that are having difficulty paying their debts as they become due and many end up filing for bankruptcy. Most of those clients fail behind on their obligations as a result of purchasing a home that utilize a good portion of their monthly income to maintain. Consequently, we always recommend that our clients try to have their monthly housing payment (principal, interest, taxes, insurance and condo/hoa payment) not exceeds 28% of their income if possible.
The costs of owning a home exceed your mortgage payment (if any), real estate taxes, insurance and HOA/Condo fees. This is even more important when you are purchasing a resale, do you know what the utility bills will be monthly? Do you know what the monthly landscaping and other home maintenance costs will be?
Tip #5–Always purchase title insurance
Title insurance is available to purchasers of real estate at closing and extremely important. Title insurance protects the purchaser against any “clouds on title” (i.e. unpaid liens or mortgages, other people claiming ownership of the property, errors in deeds).
For any questions about real estate, please contact the experienced real estate 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.
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.