In response to the Covid-19 outbreak, the federal government and the State of Florida have imposed a foreclosure moratorium—a temporary halt in the initiation of foreclosure procedures—for specific kinds of loans. The federal Coronavirus Aid, Relief and Economic Security (CARES) Act, which the President signed into law on March 27, 2020, imposed a 60-day foreclosure moratorium starting March 18, 2020, for federally backed mortgage loans.
Under this Act, a servicer of a federally backed mortgage loan that's secured by a first or subordinate lien on residential real property, including individual units of condominiums and cooperatives, may not initiate any foreclosure process, move for a foreclosure judgment or order of sale, or execute a foreclosure-related eviction or foreclosure sale. This moratorium covers the majority of residential mortgage loans in the country. In addition:
- The Federal Housing Finance Agency (FHFA) later extended the moratorium until at least June 30, 2020, and then announced a further extension until at least August 31, 2020. The foreclosure moratorium applies to Fannie- and Freddie-backed, single-family mortgages.
- The VA has also imposed a foreclosure moratorium on VA-guaranteed loans through August 31, 2020. The moratorium applies to the initiation of foreclosures, and to the completion of foreclosures in process.
- The USDA also set a foreclosure and eviction moratorium for all single family Housing Direct Home Loans through August 31, 2020.
Many banks have offered a forbearance during this time. However, a forbearance does not mean you just pick up your regularly scheduled payments once the time has lapsed. A forbearance just means that you don't have to pay for 3-6 months. However, at the end of that time period, the full amount of all of those months may be due. If you can't pay it, a foreclosure action against could be filed against you. Don't wait until it's too late to reach out for help. At Holland Law Group, we can help you navigate through these troubling times and provide the answers and experience needed to deal with these issues. Our attorneys will explain the available options and provide the guidance that will allow you to make the best choices for you and your family.