FANNIE MAE AND FREDDIE MAC EXTEND FORECLOSURE MORATORIUM
FANNIE MAE and FREDDIE MAC today have extended their policy related to the foreclosure and eviction moratorium in an attempt to help the housing market and to help homeowners thru this difficult financial time as a result of the COVID-19 pandemic striking our country.
The Federal Housing Finance Agency (FHFA) announced a similar policy a few days ago. Both FHA, Fannie Mae, and Freddie mac have agreed to extend the moratorium until January 1, 2021, which was set to expire on August 31, 2020.
This policy applies to Fannie Mae, Freddie Mac and FHA backed mortgages ONLY. The temporary freeze on foreclosures applies to Fannie- or Freddie-backed, single-family mortgages only. The pause on evictions applies only to tenants who live in properties that have been acquired by Freddie or Fannie through foreclosure. It does not apply to tenants in homes that have not been foreclosed on.
In addition to the actual moratorium, they are directing services( like Wells Fargo; Mr. Cooper, SPS) to offer COVID-19-related relief for borrowers, including providing forbearance -- or delayed mortgage payments -- for up to 12 months, waiving penalties or late fees, and offering loan modification options.
It is noted that this will affect 28 million homeowners by this action, said FHFA director Mark Calabria. FHFA said earlier this week that it estimates it will cost Fannie and Freddie at least $6 billion to help homeowners and renters.
If you are affected by foreclosure or need to inquire about your loan please go to www.KnowYourOptions.com or call us at 781-279-1822 to discuss your options.