Mortgage Relief Act: Foreclosure Freeze and Forbearance

Welcome back to Wednesday with the Whittemore Group at eXp Realty! In this session, we'll delve into the recently released Mortgage Relief Act, specifically addressing foreclosure freezes and forbearance options. As we navigate through the impact of the ongoing pandemic, it's crucial to stay informed about the measures in place to assist those affected.

Presidential Order: Foreclosure and Eviction Cease for 60 Days

Last week, President Trump issued a significant order to halt foreclosures and evictions for a duration of 60 days across the United States in response to the challenges posed by the coronavirus. This directive aims to provide relief to homeowners facing financial uncertainties during these unprecedented times.

Implementation by Financial Institutions

Several financial institutions, including Allied and Bank of America, have promptly aligned with the presidential guidance. They have taken proactive steps such as suspending mortgage payments for eligible borrowers. While the initial mandate is for 60 days, it's noteworthy that some banks are already implementing these measures.

Comprehensive Freeze by Key Entities

Various entities crucial in the housing market, such as the Federal Housing Financing Agency, Housing and Urban Development (HUD), the United States Department of Agriculture, Fannie Mae, and Freddie Mac, have announced freezes on foreclosures and evictions for the next 60 days. Additionally, they are offering forbearance options, considering the current situation as a form of disaster relief.

Important Note: Take Action

If you find yourself in a foreclosure proceeding or anticipate challenges in making mortgage payments, proactive communication is key. Reach out to your mortgage company, contact the bank's lawyer, and ensure they are aware of your situation. This step is vital to halt or postpone foreclosure proceedings.

Forbearance Explained: Up to 12 Months Suspension

Forbearance, a significant relief measure, allows the suspension of mortgage payments for up to 12 months. This provision acknowledges the economic hardships caused by the pandemic, providing a substantial period for affected individuals to stabilize their financial situations.

Types of Banks Involved

Understanding the landscape of mortgage lending is crucial. There are primary banks, where you initially secure a loan, and secondary banks that acquire and hold your mortgage. The key players in the secondary mortgage market are Freddie Mac, Fannie Mae (handling government-backed loans like VA and FHA), and smaller entities like Freddie Mac (focused on savings and loans).

Why these Measures?

The primary objective behind these measures is to prevent a domino effect that could lead to widespread evictions, landlords facing reduced rental income, and potential foreclosures. By taking proactive steps, the authorities aim to avoid a repeat of the housing market challenges experienced in 2008.

Local Support: Sheriff's Offices and Courts

Local sheriff's offices across many counties are actively supporting these measures by ceasing eviction enforcement. Courts are also refraining from taking on additional foreclosure cases, providing further relief for individuals facing financial uncertainty.

Application Process: Act Now

If you find yourself impacted and in need of assistance, don't hesitate to take action. Contact your bank, whether through a call or email, and express your situation. Applying for relief programs is essential to ensure your mortgage payments are suspended until you can resume regular payments.

In these challenging times, it's crucial to stay informed and proactive. The Mortgage Relief Act, with its foreclosure freeze and forbearance options, offers a lifeline for those facing financial uncertainties. Remember to reach out to your financial institutions, stay updated on any extensions beyond the initial 60 days, and take advantage of the support available.

If you have any questions or require further information, please feel free to call/text us at 850-204-4416 or email us at Admin@WhittemoreGroupRE.com