The Covid pandemic has changed the way businesses function, and it has also created many challenges for homeowners facing foreclosure.
This does bring the question, how do foreclosures work during the Covid times? Are they on hold, or you still need to pay?
We gathered some of the most common questions regarding foreclosures during Covid to give you a good insight into what you can do and how you can handle this situation.
Are foreclosures still on hold?
As of the time of this writing, foreclosures are still on hold. The government has extended the foreclosure moratorium 4 times so far.
So we could see another extension if new cases continue to increase.
The general consensus is, the government won’t allow thousands of homeowners to lose their homes.
That could spell disaster for the real estate market and the economy.
Foreclosure eviction during COVID-19
The U.S. Department of Housing and Urban Development (HUD) which oversees federally backed mortgages have extended their eviction moratorium until January 31st, 2021.
That is great news for troubled homeowners who have lost their incomes and the ability to pay their mortgages.
Although the government has a moratorium on foreclosures and evictions, it may vary by state.
You should check with your local county office to get the information you need. That way you won’t be illegally forced to leave your home.
Can foreclosure happen during COVID-19?
Absolutely, it all depends on the local regulations. While there are certain federal requirements, local foreclosure laws are still in effect.
That’s especially true if you don’t have a federally-backed mortgage.
When that happens, it’s up to your lender to choose how they handle the situation while adhering to the federal laws.
Keep in mind that a foreclosure is a process, and most if not all lenders are willing to work with you.
A lender doesn’t want your home, they want the interest generated from your payments. So, they have programs designed to help homeowners in need.
Texas foreclosure moratorium
The Federal Housing Finance Agency has extended the moratorium for single-family foreclosures until January 31st, 2021.
This applies to the homeowners in the Freddie-backed single-family mortgages.
The FHA has also extended the eviction and foreclosure moratorium for the FHA-insured single-family mortgages (falling under the CARES act until February 28th, 2021.
The same date is a deadline for the USDA extension of evictions and foreclosures. This is valid throughout the state of Texas.
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When will foreclosure resume in Texas?
According to the information above, foreclosures will start resuming in Texas beginning with either January 31st or February 28th 2021, depending on the foreclosure protection.
That means we have less than a month or two months until the foreclosures will actively start taking place again.
Foreclosures have changed during the Covid-19 pandemic, with the government and many institutions providing relief to people in need.
However, all the assistance and support will eventually come to an end, and foreclosures will start happening again either late January or late February based on the foreclosure protection.
It’s essential to contact any of the regulators and manage your foreclosure situation as quickly as possible. While foreclosures were pushed away for a little while, they are coming back to normal very soon.