There is good news for renters and homeowners who have federal loans.
The Federal Association of Lenders announced that amid the pandemic, the moratorium on evictions and foreclosures will be extended for another two months, so people who cannot pay their rent or mortgage will be protected.
Freddie Mac and Fannie Mae, lenders who finance most federal home loans, have decided to extend the protection that was put in place until August 31 to avoid evictions of those who cannot pay their rent or mortgage.
The moratorium was about to expire on June 30. And with this extension, they explained, they seek to help families who have run out of income, and provide some relief, giving them more time to recover.
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For its part, the National Department of Housing and Urban Development also reported that it will extend the forgiveness of loans to homeowners who have mortgages insured by the federal housing administration, or FHA for its acronym in English. This program was implemented in March, and covered 60 days of moratorium, which lasted until June, and now, until the end of August.
Housing Secretary Ben Carson said, “Although the economic recovery is already being seen, many families still need time and support to recover financially. With this help, "he added," we will ensure that these families do not have to worry about losing their homes as they struggle to cope after the impact of COVID-19. "
It is recommended that, if you can, keep paying your mortgage, but if you cannot, ask for this support. Call your lender to find out if you qualify to have your payments postponed for up to a year.
By the way, that, under this program, at the end of the moratorium period, you will not be asked to pay everything owed in a single payment, but you will be given installments, according to the terms that you negotiate for it.
If your loan is not backed by the federal government, you can also request that your payments be postponed, but the terms will be at the discretion of your lender.
If you need this support, call your creditor as soon as possible to find out what help they can give you.