The following government polices have been adopted to help Texan homeowners remain in their homes during the COVID-19 crisis. This policy list covers federal and local protections from property tax foreclosures as well as mortgage foreclosure protections. If you know of any updates that should added to this list, please email CommunityAssistanceProject@law.utexas.edu.
June 17th: The Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac are extending their moratorium on foreclosures and evictions through August 31, 2020, for homeowners in Fannie and Freddie-backed single-family mortgages. The FHA also announced an extension of its foreclosure and eviction moratorium through August 31, 2020.
May 14, 2020: The Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac are extending their moratorium on foreclosures and evictions until at least June 30, 2020, for homeowners in Fannie and Freddie-backed single-family mortgages. FHA also announced an an extension of its foreclosure and eviction moratorium through June 30, 2020, for homeowners with FHA-insured single family mortgages. The VA and USDA have also extended the foreclosure moratorium on their residential loan products through June 2020.
May 13, 2020: The Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac are offering a new payment deferral option for homeowners in a COVID-19 forbearance plan, allowing the homeowners to repay their missed payments at the time the home is sold, refinanced, or at maturity.
Here is important information on these protections and how borrowers can determine what type of loan they have. Borrowers must contact their mortgage servicer to request assistance.
Federal Stimulus Legislation
Here are the key foreclosure protections in federal stimulus bill (the CARES Act) that passed by Congress on March 27th. See Section 4022.
- 60-day moratorium (expired May 18th) on initiation or execution of foreclosures on covered loans, which are federally-backed loans on 1-4 unit properties purchased, securitized, owned, insured, or guaranteed by Fannie Mae or Freddie Mac, or owned, insured, or guaranteed by FHA, VA, or USDA. A borrower does not have to be experiencing a COVID-19 related hardship. See above for information on extensions of the moratorium.
- Borrowers with a covered loan and experiencing a financial hardship due to COVID-19 can request and obtain a forbearance on their loan for up to 180 days, with an option to extend another 180 days. Approximately two-thirds of residential mortgages are covered loans.
- No late fees, interest, or penalties accrue during the forbearance period beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract.
Here is a useful federal guide to mortgage relief options under COVID-19.