Biden Extends Ban On Housing Foreclosures During Pandemic

[DonViejo]

Source: Huff Post/Associated Press



The moratorium on foreclosures of federally guaranteed mortgages had been set to expire on March 31.

WASHINGTON (AP) — President Joe Biden is extending a ban on housing foreclosures to June 30 to help homeowners struggling during the coronavirus pandemic.

The moratorium on foreclosures of federally guaranteed mortgages had been set to expire on March 31. On his first day in office, Biden had extended the moratorium from Jan. 31. Census Bureau figures show that almost 12% of homeowners with mortgages were late on their payments.

The White House says the coordinated actions announced Tuesday by the Departments of Housing and Urban Development, Veterans Affairs and Agriculture also will extend to June 30 the enrollment window for borrowers who want to request mortgage payment forbearance — a pause or reduction in payments — and will provide up to six additional months of forbearance for borrowers who entered forbearance on or before June 30 of last year.

The White House says more than 10 million homeowners are behind on mortgage payments and Biden’s actions are to help keep people in their homes amid “a housing affordability crisis” triggered by the pandemic. It says “homeowners will receive urgently needed relief as we face this unprecedented national emergency.”




Read more: https://www.huffpost.com/entry/biden-extends-foreclosures-ban_n_602bbbf3c5b6f88289fe53c7

[olegramps]

1. What happens when the moratorium is lifted? Will renters and owners owe thousands?

This could be a major disaster. Will there be massive evictions and foreclosures? I can only suppose that the banks holding morgages and landlords are going to demand payment since many of them face the same situation.

[jimfields33]

2. I don't know about renters,

But hopefully mortgage companies will add missed payments on to the end of the loan life. Actually with renters, the owner would get the same end of life loan payments. That way everyone is treated the same. Renters and mortgage holders all got to live in their dwelling during the pandemic without interruption. Yes the renter gets a bit better deal. But it’s better the not having anybody in the dwelling and it does cost money to evict. That’s the best I can see this working.

[MichMan]

4. Renters will never be forced to make up the difference; landlords will just be stuck with the loss

I see no way that renters can be forced to repay all the back rent that is owed. If the landlord increases the rent after the pandemic to claw some of it back, the renters will just move out and live somewhere else.

[George II]

3. Most banks try to work out payment plans. Lots of times it's more expensive to foreclose and then...

....try to sell the property than to help the existing mortgage holder pay off the outstanding payments, or even forgive a big part of them.

The fact is, if a mortgage is in the first half or even about two thirds of it's life, a huge chunk of the past due is for interest, not principle.

Rents are another whole thing. There are a lot of small landlords, not land barons, who rent out spare rooms, basements, or second houses they they kept to augment their working income.

[MichMan]

5. Why don't states and cities cancel all the property tax payments as well?

[jimfields33]

6. That's about the only revenue the cities have

Sales taxes are low. State taxes are hit due to lower income and unemployment. Cities and states are suffering and don’t think many would be able to pay their employees without property taxes.

[MichMan]

7. So are many landlords