WASHINGTON – One of his first acts in office President Biden requested federal agencies to extend eviction and foreclosure moratoriums for millions of Americans. In response, the U.S. Department of Agriculture announced an extension of eviction and foreclosure moratoriums on USDA Single Family Housing Direct and Guaranteed loans (SFHDLP and SFHGLP) through March 31, 2021. The actions announced today will bring relief to residents in rural America who have housing loans through USDA.
“USDA recognizes that the COVID-19 pandemic has triggered an almost unprecedented housing affordability crisis in the United States. Today, 1 in 10 homeowners with a mortgage are behind on payments. In addition to the actions taken, the Biden Administration looks forward to working with Congress to take more robust and aggressive actions to bring additional relief to American families and individuals impacted by the pandemic.”
Lenders will now have to work with borrowers to determine if they can resume making regular payments, either offer an affordable repayment plan or term extension to defer any missed payments. If lender finds that borrower cannot make payment loss mitigation options outlined in HB-1-3555. The special relief measured that are outlined in Chapter 18 Section 5 “Assistance in Natural Disasters” will apply. These options include Term Extensions, Capitalization and Term Extensions, and a Mortgage Recovery Advance.