Fannie Mae, Freddie Mac, and HUD Halt Foreclosures and Evictions in Response to COVID-19 Crisis

Millions of homeowners will have relief from foreclosure as mortgage lenders Fannie Mae, Freddie Mac, and HUD suspend foreclosures and evictions in response to the COVID-19 crisis.

In a statement released by the Department of Housing and Urban Development, all single-family homeowners with FHA-backed mortgages would be shielded from foreclosure or eviction until mid-May. HUD is directing mortgage servicers to immediately stop all new foreclosures, and suspend those already in progress.

This came as Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to suspend all foreclosures for at least 60 days. This suspension will allow homeowners with an enterprise-backed mortgage to stay in their homes during the COVID-19 crisis.

In an earlier announcement this month, the agency announced Fannie Mae and Freddie Mac would offer payment forbearance to borrowers hit by the outbreak. This means allowing mortgage payments to be suspended for up to a year because of hardship related to the COVID-19 crisis.

This is certainly a piece of great news for many homeowners who were concerned about losing their homes  in the middle of a pandemic. Fannie and Freddie are working with mortgage servicers to ensure that borrowers facing hardship because of the COVID-19 can get relief. This news will help millions of homeowners teetering on the brink financially, as the pandemic takes a toll on businesses, jobs, and almost every aspect of our everyday life.

Borrowers affected by the COVID-1 crisis should get in touch with their mortgage servicers as quickly as possible.

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