Both government sponsored enterprises (GSEs) have announced that their nationwide suspension of single-family foreclosures and evictions has been extended through the end of the year. The suspension, one of several relief options Fannie Mae and Freddie Mac originally announced in March when the COVID-19 national emergency was invoked, has been extended on short term basis and was most recently set to expire on August 31.
In addition to the suspension, the two companies continue to allow Their loan servicers to provide up to 12 months forbearance to households financially impacted by the coronavirus and to waive assessments of penalties or late fees. Loan modifications will be available to borrowers at the end of the forbearance period and the companies have provided a menu of options for borrowers to bring their loans current including deferring any payback until the loan is paid off, refinanced, or the home is sold.
"The extension of our eviction and foreclosure moratorium is just one part of the comprehensive assistance we're providing borrowers and communities impacted by COVID-19," said Donna Corley, executive vice president and head of Freddie Mac's Single-Family business. "We are committed to helping families affected by the pandemic, and we have instructed servicers to work with borrowers who are unable to make their mortgage payments to ensure they are evaluated for a forbearance plan or other appropriate assistance."
Borrowers are eligible for forbearance regardless of whether their property is owner occupied, a second home or an investment property. The moratorium on evictions is available only for homes that are owned by one of the GSEs. It does not apply to tenants in homes that have not been foreclosed.