FHFA Extends Eviction Moratorium, But Foreclosures Can Resume

The eviction suspension for properties that Fannie Mae or Freddie Mac acquire through foreclosure or a deed in lieu process will last through September 30, 2021. But the foreclosure moratorium itself is expiring.

By , Attorney

The Federal Housing Finance Agency (FHFA), which regulates Fannie Mae and Freddie Mac, announced an extension of the ban on post-foreclosure evictions through September 30, 2021. But the foreclosure moratorium that applies to Fannie- and Freddie-backed, single-family mortgages will expire on July 31, 2021, as scheduled. So, loan servicers may initiate or resume foreclosures when the moratorium expires but may not evict a foreclosed borrower or other legal occupants.

Also, homeowners who've experienced a financial hardship due to the coronavirus pandemic can still request a COVID-19 forbearance from their loan servicer.

Eviction Moratorium for Foreclosed Homes Through September 30, 2021

Again, evictions of foreclosed borrowers and their occupants are paused through September 30, 2021. The eviction suspension applies to single-family properties that Fannie Mae or Freddie Mac have acquired through a foreclosure or deed in lieu of foreclosure. That is, the eviction ban applies to real estate owned (REO) properties.

COVID-19 Foreclosure Moratorium Is Expiring

The foreclosure moratorium that the FHFA imposed for Fannie- and Freddie-backed, single-family mortgages expires on July 31, 2021. Foreclosures may start or resume when the moratorium expires.

But the FHFA previously announced that servicers must implement a new Consumer Financial Protection Bureau (CFPB) rule as of July 31, 2021. This rule provides foreclosure protections to borrowers.

Getting Foreclosure Help

If you have a Fannie- or Freddie-backed mortgage loan and are having trouble making your mortgage payments, contact your loan servicer immediately to find out about your options. To learn more about alternatives for borrowers with Fannie Mae loans, go to Fannie Mae's Know Your Options website. To find out if Fannie Mae owns your mortgage loan, go to www.fanniemae.com/loanlookup. For more information about options for borrowers with Freddie Mac loans, go to the Freddie Mac website. To find out if Freddie Mac owns your mortgage loan, use Freddie Mac's Loan Lookup tool. You can also ask your servicer if Fannie Mae or Freddie Mac owns or guarantees your loan, or call 800-232-6643 (Fannie Mae) or 800-373-3343 (Freddie Mac).

In addition, the CFPB provides a Coronavirus Mortgage and Housing Assistance webpage. Borrowers seeking more information on the options available to them should also consider contacting a (free) HUD-approved housing counselor.

Effective date: July 30, 2021