Moratorium on Foreclosures Extended through Summer
No foreclosure for you! At least that is what the Federal Government says in the CARES Act. As of June 17, 2020, the Federal Government has chosen to extend the current moratorium on foreclosures through the end of August 2020. But first, the basics.
When the CARES Act was signed into law on Mach 27, 2020, a component of the Act was the pause button on foreclosures of all federally backed mortgage. While there are many “wherefore” and “thereof”’ within the CARES Act, the main point is if you have a mortgage that is backed by the Federal Government, the bank cannot file for foreclosure until at least August 31, 2020 as of today.
So, while the CARES Act tells banks who hold federally backed mortgages that they cannot foreclosure for a while, the CARES Act does not say “you don’t have to pay.” The exact opposite is a true. Part of the CARES Act is that these banks that may continue to send you a monthly mortgage bill. Further, the banks are required to have programs setup for a homeowner that is affected by COVID-19. These programs can range from forbearance to modifications of your mortgage.
Keep in mind, there is a large difference between a forbearance and a modification. A forbearance means the bank is going to wait a certain period of time, say 6 months, before they ask you for the payments. Typically, at the end of forbearance, the bank will require payment of all 6 months’ worth of mortgage payments all at once. Whereas a modification of a mortgage is where you and your bank sit down and renegotiate the terms of your loan to make it more affordable.
So, if you are in a position and need to take advantage of protections under the CARES Act, contact the attorneys at your Legal Team For Life. We have spent countless hours reviewing Governor DeSantis’ Executive Orders, the Federal CARES Act, and have over 45 years’ experience serving our neighbors in the community.
About the Author
Vincent L. Sullivan graduated in the top quartile of his class from the Florida Coastal School of Law in 2015. He specializes in Consumer Defense, Appeals, Debt Collection defense, Foreclosure defense, and Real Estate law. Mr. Sullivan has represented both landlords and tenants in court, which has given him an understanding of each party’s needs. He is passionate about consumer defense and has helped clients fight debt collectors and stop harassing phone calls. Mr. Sullivan also works in both state and federal appellate courts and has been able to successfully represent many homeowners and consumers who have appealed their cases. Mr. Sullivan lives in Palm Coast.