Good news for all Americans who were worried about their mortgages. As per an executive order by President Biden, there will be an extension on ban on home foreclosures for all types of federally-backed mortgages. This extension will be available for almost three months. This relief program will provide a push and it will also be helpful in stabilizing the nation’s housing affordability crisis.
Extension Of Mortgage Relief By President Biden Due To Pandemic
The moratorium on foreclosure is set to expire on March 31. But, with the new relief program, the new date will be pushed back to Jan 31. The new Biden administration will also extend the enrollment window. Thus, borrowers can pause as well as reduce the mortgage payment.
With the result of the recent action, the federal government will help the borrowers to defer any type of mortgage payment for an extra six months. All eligible homeowners will be enrolled under the forbearance plan by the end of June this year.
There are almost 11 million federal government-backed mortgages in the entire United States and almost 2.7 million homeowners are currently enrolled under the forbearance plan.
In a statement by White House administration, President Biden is committed towards protecting home ownership and housing stability at the time of pandemic. This step by the Biden administration is aimed towards building stronger and equitable communities.
As per White House administration, the extended protection is aimed towards the protection of colored- communities that are hit hardest by the pandemic. Color homeowners make up a disproportionate share of all homeowners who have delinquent loans.
But, people should know that the action taken on Tuesday does not take care of the statement by the Center for Disease Control and Prevention that says that there is a federal moratorium on eviction of no rent payment. The moratorium will also expire on March 31.
Almost 107 million Americans are renters.
At present, president Biden’s administration has been meeting different stakeholders to assess their next step towards eviction policy. Additional details about this policy is not present.
Ex-president Trump had last extended the moratorium on federal foreclosures till August last year. Through the CDC, the Trump administration has also started a four-month moratorium on eviction for people who were unable to make payment for rent.
As per the recent news, president Biden is pushing a $1.9trillion Covid-19 relief fund. This bill is being pushed in the congress. Under the same bill, there is a provision for a $10 billion homeowner assistance fund. The fund will be used to provide federal assistance to homeowners who have mortgage payments and additional utility costs.
As per an official statement by White House administration. The action will collectively cover almost 70% of single-family home mortgages. Almost 10 million adults stay in households that are not caught up on mortgage payments.
Action on Tuesday by President Joe Biden can be seen as a coordinated effort by the US housing and urban development. The recent proclamation can be seen as a positive approach towards taking care of citizens at the time of pandemic.