By Michael Flynn, Doug Prince and Khaled Tarazi
On February 9, the Federal Home Finance Agency announced extensions of time until March 31, 2021 for the Freddie Mac and Fannie Mae COVID-related foreclosure and eviction moratoria, and allowed an additional three months of forbearance for borrowers in a forbearance plan as of February 28.
Other federal agencies and various states have also extended such deadlines for foreclosure and eviction moratoria, and for borrowers to apply for forbearance. Below are the new deadlines for the GSEs, federal agencies and California, Washington, Oregon and Arizona.
NOTE THAT federal and GSE restrictions apply to loans covered by restrictions, even if a state does not have moratoria or restrictions of its own. ALSO NOTE that this list does not include restrictions in individual counties and municipalities.
GSEs and Federal Agencies
Freddie Mac and Fannie Mae
Foreclosure and eviction moratoria – until March 31, 2021.
Forbearance – borrowers with a mortgage backed by Fannie Mae or Freddie Mac may be eligible for an additional forbearance extension of up to three months. Eligibility for the extension is limited to borrowers who are on a COVID-19 forbearance plan as of February 28, 2021, and other limits may apply. Further, COVID-19 payment deferral for borrowers with an Enterprise-backed mortgage can now cover up to 15 months of missed payments.
FHA
Foreclosure and eviction moratoria – until March 31, 2021.
Forbearance application deadline – until March 31, 2021.
U.S. Department of Agriculture
Foreclosure and eviction moratoria – until March 31, 2021.
Forbearance – until March 31, 2021 according to CFPB website.
Veterans Administration
Foreclosure and eviction moratoria – until March 31, 2021.
Forbearance – April 1, 2021, according to VA Circular 26-20-12.
Centers for Disease Control
Evictions – until March 31, 2021.
States
California
Foreclosures – no statewide moratorium.
Evictions – Landlords cannot bring an action for unlawful detainer based on nonpayment of COVID-19 rental debt until August 1, 2021, if the tenant provides a declaration of COVID-related hardship, and, for rent due from September 1, 2020 to June 1, 2021, the tenant pays 25% of the rent. There is also a moratorium until July 1, 2021 on unlawful detainers that allege a cause of action other than nonpayment of COVID-19 rental debt for the purpose of retaliating against the lessee because the lessee has COVID-19 rental debt.
The date on which an action to recover COVID-19 rental debt may be brought is August 1, 2021.
Forbearance – SB 1079 requirements to give foreclosure applicants notice of denials remain in effect until September 1, 2021.
Washington
Foreclosures – no statewide moratorium, but the Department of Financial Institutions has issued guidance strongly encouraging servicers to work with borrowers.
Evictions – until March 31, 2021.
Oregon
Foreclosures – there was a foreclosure moratorium which is generally thought to have expired December 31, 2020, but there is uncertainty about whether it actually expired. There are ongoing efforts in the Oregon legislature to further extend the moratorium.
Evictions – until June 30, 2021.
Arizona
Foreclosures – no statewide moratorium.
Evictions – no statewide moratorium.
Buchalter’s Mortgage Banking Industry Group and Real Estate Practice Group consist of experienced, industry-leading attorneys who can counsel clients on the wide range of COVID-related mortgage and real estate issues. Please visit our website to find all of our attorneys in these Groups who can provide expert advice about these and any other real estate and mortgage issues.
