{"id":1580,"date":"2021-08-04T11:00:10","date_gmt":"2021-08-04T15:00:10","guid":{"rendered":"https:\/\/www.deeds.com\/articles\/?p=1580"},"modified":"2024-04-25T23:19:28","modified_gmt":"2024-04-26T03:19:28","slug":"more-atorium","status":"publish","type":"post","link":"https:\/\/www.deeds.com\/articles\/more-atorium\/","title":{"rendered":"More-atorium"},"content":{"rendered":"\n

The Quest to Head off Evictions and Foreclosures in the Second Half of 2021<\/em><\/h1>\n\n\n\n

UPDATE:<\/strong> As we go to press in the first week of August 2021, the CDC has just announced a new Covid-19 eviction moratorium. The eviction ban is slated to last through Oct. 3. It covers most U.S. counties with significant numbers of Covid-19 Delta variant cases, and will apply to about 90% of the national population. As the new announcement will likely face court challenges, the story continues\u2026<\/em><\/p>\n\n\n\n

\"Image<\/figure><\/div>\n\n\n\n

The eviction\nmoratorium from the Centers for Disease Control and Prevention<\/a> (CDC)\nis over. State and local agencies that received the U.S. Treasury Department\u2019s Emergency\nRental Assistance funds have been urged to hurry and distribute the funds. Just\n$3 billion out of more than $46 billion in emergency relief had reached rental households\nby July 1st<\/sup>.<\/p>\n\n\n\n

With emergency funding tied up at state and local levels, the\npandemic keeps frustrating the U.S. residents trying to catch up with their\nhouse payments. So, in July 2021, the Biden administration stepped up\nforeclosure-prevention measures, and directed federal agencies to extend their\neviction holds through September.<\/p>\n\n\n\n

As of August 2021, here\u2019s the latest.<\/p>\n\n\n\n\n\n\n\n

Available Now: Relief on Government REO Homes Through September<\/strong><\/h2>\n\n\n\n

Following a request from the U.S. president, homeowners with\nfederally backed mortgages can get loan modifications<\/strong> featuring a 25% cut\nin principal and interest payments. Additionally, as of Jul. 30, 2021 (the day\nbefore the CDC moratorium expired), term extensions are available, giving people\nmore time to pay. Certain extensions cover both homeowners and\nrenters through Sept. 30, 2021. <\/p>\n\n\n\n

Over the coming months, holders of mortgages backed by the\nFederal Housing Administration (FHA)<\/strong> may file COVID-19 recovery partial\nclaims.<\/strong> Those who can start paying their mortgages again, can seek\ninterest-free subordinate liens <\/strong>to take care of skipped payments at the end\n(or refinancing) of their mortgages.<\/p>\n\n\n\n

The FHA has extended<\/a> its foreclosure-related eviction moratorium.<\/strong> At least through Sept. 30, occupants may stay in properties that have faced Single-Family Title II forward and Home Equity Conversion (reverse mortgage) foreclosures. The current pressures on the FHA, we should mention, are heavy. As of June 2021, the FHA held 7.6 million outstanding loans, with around 10% considered seriously delinquent.<\/p>\n\n\n\n

The Department of Agriculture (USDA)<\/strong> will hold off on new foreclosures unless and until mortgage relief options are sought first. And the Department of Veterans Affairs (VA)<\/strong> is barring evictions<\/a> from VA loan properties.<\/p>\n\n\n\n

Fannie and Freddie Leave Eviction Relief in Place Through September<\/strong><\/h2>\n\n\n\n

Fannie Mae and Freddie Mac have extended their own moratoria\non evictions<\/strong> until Sept. 30 for properties they hold following foreclosure\nor deed-in-lieu\nproceedings<\/a>. <\/p>\n\n\n\n

To avert foreclosure, holders of conventional mortgages can reposition\nmissed payments to the end of their term, modify their mortgages, extend them\nup to 40 years, and apply for reduced mortgage payment options.<\/p>\n\n\n\n

 \u261b Important note: <\/em><\/strong>Investor-owners who hold properties backed by Fannie\nMae or Freddie Mac must promptly apply for Emergency Rental Assistance before moving\nto evict people with Covid-related financial hardships.<\/em> <\/strong><\/p>\n\n\n\n

The Federal Housing Finance Agency notes that Fannie and Freddie may continue revising their policies as economic information and health situations change. Owners and renters are advised to check the government\u2019s Consumer Financial Protection Bureau website<\/a> for updates about new options for financial relief and deadlines.<\/p>\n\n\n\n

Peer Pressure in Congress<\/strong><\/h2>\n\n\n\n

As our readers know, the CDC\u2019s embattled eviction\nmoratorium for renters ran out at the end of July 2021. Biden\u2019s administration can\u2019t\nunilaterally extend it. The Supreme Court said that\u2019s up to the legislature. <\/p>\n\n\n\n

Rep. Maxine Waters took the cue, introducing the\u00a0Protecting Renters from Evictions Act of 2021<\/strong>.<\/em> The bill sets out to keep \u201cmore than 11.4 million people struggling to pay their rent<\/a>\u201d in their homes through the end of the year, and to slow the coronavirus spread, while states and localities distribute federal emergency funding for renters and landlords. But the moratorium is over, and this bill has not succeeded in the House. <\/p>\n\n\n\n

Rep.\u00a0Cori Bush, a Missouri Democrat,\u00a0camped overnight on the Capitol steps<\/a> to rebuke members of the House for beginning their six-month summer recess during the emergency. Bush, for whom eviction is an actual life experience, urged colleagues to stay and garner the votes needed to send the bill to the Senate.<\/p>\n\n\n\n

This Was a Crisis Waiting to Happen. How Will the Country Transcend It?<\/strong><\/h2>\n\n\n\n

U.S. housing has long been a tale of two countries. Some people\nand companies are profiting from the boom in housing prices. Others are\nstruggling. <\/p>\n\n\n\n

In 2019, according to the Department of Housing and Urban Development (HUD) Annual Homeless Assessment Report: \u00a0<\/a><\/em><\/p>\n\n\n\n