Region:
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Economy

Biden extends mortgage relief, ban on home foreclosures through June 2021

  • Biden extends mortgage relief, ban on home foreclosures through June 2021
    The protections were due to expire on March 31. Biden extends mortgage relief, ban on home foreclosures through June 2021
Region:
USA
Category:
Economy
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The Biden administration issued a statement Tuesday announcing that the mortgage forbearance and foreclosure protection programs will be extended through June 30. The protections were due to expire on March 31.

 

The White House is extending mortgage relief and a ban on home foreclosures for government-backed mortgages through the end of June 2021, part of an effort to help tackle the housing affordability crisis amid the coronavirus pandemic.

The Biden administration issued a statement Tuesday announcing that the mortgage forbearance and foreclosure protection programs will be extended through June 30. The protections were due to expire on March 31.

The White House said it will also extend the enrollment window to request mortgage payment forbearance until June 30. Forbearance allows homeowners to pause mortgage payments for a designated period of time. The payments aren’t forgiven; they must be repaid later. Some servicers may also offer a reduced payment during this period instead.

Borrowers who entered forbearance on or before June 30 will also be allowed to defer mortgage payments for an additional six months, the White House said.

The actions are an extension of an order that was originally enacted under the Trump administration in March 2020 at the onset of the outbreak. President Joe Biden initially extended the moratorium on federally-backed foreclosures through March 31 as part of a number of orders he signed on his first day in office.

"Today’s actions directly benefit the 2.7 million homeowners currently in COVID forbearance and extend the availability of forbearance options for nearly 11 million government-backed mortgages nationwide," the White House said in a statement.