New Freeze on Foreclosures to Cost Fannie & Freddie $6 Billion

"With this latest extension of the foreclosure and eviction moratorium, we can continue to help ensure distressed borrowers are able to remain in their homes during this national emergency."

"With this latest extension of the foreclosure and eviction moratorium, we can continue to help ensure distressed borrowers are able to remain in their homes during this national emergency."

Written by R. Ashton Rowles
Published on August 31, 2020

The coronavirus pandemic is the gift that keeps on taking, threatening millions of homeowners and renters alike with evictions. In response, the FHFA is extending moratoriums on foreclosures and evictions through at least December 31. The pause does not apply to tenants in homes that have not been foreclosed on by Freddie or Fannie. And those borrowers who are struggling to make mortgage payments are being encouraged to get evaluated for assistance now for up to 12 months of assistance. 

For households who are experiencing job loss, reduced income, or other financial crises due to the coronavirus pandemic, will this temporary support be enough? And what needs to happen with the economy by next year to make mortgage payments flow freely again?

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