Foreclosure Moratorium through June 2021
It looks like there are various programs that provide assistance to avoid a formal bankruptcy for short-term mortgage relief, as well as potential bars on foreclosure through June 2021.
Here is some of the information available immediately at the national level:
1. Fannie Mae specifically offers mortgage forbearance for reduced or no payments during a financial hardship. The loan has to be through Fannie Mae but you can find some basic information here: https://www.knowyouroptions.com/options-to-stay-in-your-home/overview/forbearance
2. It appears that Biden announced a foreclosure moratorium through June 2021 for government-backed loans which appears to include Fannie Mae and Freddie Mac, but not private loans. Here is some government information on what you can do based on your loan program:
3. Notably, there is no deadline for a forbearance request for Fannie Mae or Freddie Mach at this time. If you have one in place, you can request additional extensions.
Here is some of the information available immediately at the state level:
4. California also extended AB3088 through September 2021, which requires a mortgage servicer that denies a forbearance request to include detailed information about why the request was denied, which must comply with the federal CARES act.
The mortgagor must provide 21 days to cure from date of mailing of the notification and accept receipt of any revised request before the 21 day period lapses and respond within 5 days of the revised request.
This applies whether or not the loan is government-backed or private.
Mortgage servicers are required to comply with federal guidance regarding borrower options following a COVID-19 related forbearance as well. IMPORTANT: The specifics on what that might me is probably based on the loan type.
If you have a Fannie Mae or Freddie Mac loan, you should be able to show a hardship and obtain forbearance of some sort. If you have a private loan, there are still actions that can be done. The general policies in place are to deter foreclosure during this difficult time.