By Michael Flynn, Doug Prince and Khaled Tarazi
Buchalter’s February 16 COVID Alert (https://www.buchalter.com/wp-content/uploads/2021/02/FHA-VA-USDA-Foreclosure-and-Eviction-Moratoria-and-Forbearance-Application-Deadline-Extended-to-June-30.pdf) reported that the federal government had extended the FHA, VA and USDA timelines for single-family foreclosure and eviction moratoria and forbearance periods to June 30, 2021. On February 25, FHFA announced that:
- The time periods for Freddie Mac’s and Fannie Mae’s single-family eviction and foreclosure moratoria have been also extended to the same June 30, 2021 date.
- The GSEs’ COVID-19 forbearance periods have been extended to allow borrowers to be in forbearance plans for up to 18 months. Borrowers must be in a forbearance as of February 28, 2021 to be eligible, and other limitations may apply.
- The GSEs’ COVID-19 Payment Deferral for borrowers with a GSE-backed mortgage can now cover up to 18 months of missed payments.
The current deadlines for COVID related eviction and foreclosure moratoria, and for forbearance extensions, for the GSEs, federal agencies, and the West Coast states of California, Washington, Oregon and Arizona are as follows:
GSEs and Federal Agencies
Freddie Mac and Fannie Mae
Foreclosure and eviction moratoria – until June 30, 2021.
Forbearance – borrowers with a mortgage backed by Fannie Mae or Freddie Mac may be eligible for an additional forbearance extension of up to six 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 18 months of missed payments.
FHA
Foreclosure and eviction moratoria – Borrowers who were in a forbearance plan on or before June 30, 2020, may be eligible for an additional forbearance extension of up to six months in two three-month increments.
Forbearance application deadline – until June 30, 2021.
U.S. Department of Agriculture
Foreclosure and eviction moratoria – until June 30, 2021.
Forbearance – Borrowers who were in a forbearance plan on or before June 30, 2020, may be eligible for an additional forbearance extension of up to six months in two three-month increments.
Veterans Administration
Foreclosure and eviction moratoria – until June 30, 2021.
Forbearance – Borrowers who were in a forbearance plan on or before June 30, 2020, may be eligible for an additional forbearance extension of up to six months in two three-month increments.
Centers for Disease Control
Tenant Evictions – until March 31, 2021. But see the Buchalter COVID Alert regarding a Texas Federal Court finding the CDC eviction order unconstitutional (https://www.buchalter.com/wp-content/uploads/2021/02/Federal-Court-Declares-CDC-Eviction-Moratorium-is-Unconstitutional-But-Does-Not-Enjoin-the-Order.pdf).
States
California
Foreclosures – no statewide moratorium.
Evictions – Landlords cannot bring an action for unlawful detainer based on nonpayment of COVID-19 rental debt until July 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.
