While a nationwide ban on foreclosures on homes with government-backed mortgages expires July 31—Saturday—people can’t be physically evicted from their homes until after Sept. 30, regulators said Thursday.
The measure is one last-ditch safety net for financially struggling homeowners that remains in place even as several others are expiring. People who entered special pandemic mortgage forbearance programs at the earliest opportunity—in March 2020—will run out the clocks on their forbearance plans starting in September.
Although the current foreclosure ban, which applies to mortgages held by Fannie Mae, Freddie Mac, and other federal programs, expires Saturday, banks must make extra efforts to get homeowners into alternative payment plans before foreclosing. The Consumer Financial Protection Bureau created that requirement in June.
“The pandemic continues to have an outsized impact on the ability of Americans to meet their monthly rent or mortgage payments. Today’s extension of the eviction moratorium protects particularly vulnerable Americans who otherwise would be at risk of losing a place to live,” said Sandra L. Thompson, acting director of the Federal Housing Finance Agency, the regulator of Fannie and Freddie, in a statement.
A similar eviction ban for renters, meanwhile, is set to expire Saturday unless Democrats succeed in extending it.
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