Federal Authorities Freeze Foreclosures and Evictions

 Posted on March 24, 2020 in Foreclosure

As efforts continue to halt the spread of the coronavirus, millions of Americans have been prevented from going to work as usual. Some are able to work from home and maintain at least some level of income, but many more do not have the opportunity or ability to do so. This means that in addition to the fears associated with contracting the virus itself, many families also fear the reality of not being able to pay their bills. To address such fears, President Trump issued an order this past weekend that effectively halts foreclosure and eviction proceedings for a large number of American families.

Freezes and Forbearance Options

On Saturday, March 21, Housing and Urban Development Secretary Ben Carson announced that the president ordered the “immediate cessations” of evictions and foreclosures. The order was intended to help the millions of Americans who might soon be struggling to make their rent and mortgage payments.

As a part of the order, several federal agencies said they were freezing foreclosures and evictions for at least 60 days. These agencies include the Department of Housing and Urban Development (HUD), the Federal Housing Finance Agency (FHFA), and the U.S. Department of Agriculture (USDA). In addition, the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, more commonly known as Fannie Mae and Freddie Mac, respectively, have instituted moratoriums on foreclosures, as well as forbearance options for those affected by the coronavirus pandemic.

How Will the Order Affect Me?

President Trump’s directive to freeze foreclosure during the public health crisis was straightforward, but it does not provide a great deal of detail. Therefore, it is largely up to individual mortgage lenders and loan servicers to determine how they will handle the situation. For example, Bank of America announced that eligible borrowers would have their required mortgage payments suspended, but the institution did not mention a specific timeline. Ally Bank said that its borrowers could count on a 120-day moratorium on expected payments. Efforts are also ongoing to set up a national plan for managing the situation for as long as the financial effects of the coronavirus crisis last.

For now, however, it is your responsibility to contact your mortgage lender to find out what is happening with your loan. There is a good chance that your lender will have options available to not only keep you afloat now but also to prevent unexpected surprises with your mortgage down the road.

If you are on the verge of foreclosure, you should contact your lender as well. Very few courthouses, if any, are likely to be accepting foreclosure filings right now, so you have some additional time to work out a resolution with your lender.

Contact a Lake County Foreclosure Defense Attorney

For more information about your legal rights regarding your mortgage and foreclosure matters during the coronavirus crisis, contact one of our experienced Libertyville foreclosure lawyers. Call 847-549-0000 for a free consultation with Newland & Newland, L.L.P. today. As part of our commitment to your health, we are offering telephone and video conferencing options for our current and prospective clients.

Sources:

https://abc7chicago.com/health/financial-help-available-in-illinois-during-covid-19-crisis--/6026057/

https://www.bankrate.com/mortgages/programs-to-freeze-foreclosures-evictions-from-coronavirus-disruptions/