Relief for Homeowners Extended Through March
Homeowners struggling to pay their mortgages can breathe a sigh of relief, as the government has extended moratoriums on foreclosures on single-family homes with loans backed by Fannie Mae and Freddie Mac again, this time through March 31.
Furthermore, Fannie- and Freddie-backed borrowers currently enrolled in COVID-19 forbearance plans can now apply for an additional three-month extension, for a total of 15 months of relief from payments. Missed payments can be repaid when the home is sold or refinanced or at the end of the mortgage, the Federal Housing Finance Agency (FHFA) said in a press release on Tuesday.
The additional forbearance will likely be welcome news to the estimated 600,000 borrowers (most of whom are presumed to be seriously behind on their payments) whose forbearance plans would have otherwise expired at the end of March, according to a recent report by mortgage data company Black Knight.