Biden administration extends eviction freeze: what to do if you’re having trouble making payments

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The Biden administration extends its moratorium on evictions, but calls on Congress to do more. (iStock)

The Federal Housing Finance Agency (FHFA) and the Federal Housing Administration (FHA) each announced Friday that their moratoriums on evictions related to the coronavirus pandemic, which protect landlords and tenants from eviction in the event of non-payment of rent, will be extended until September 30, 2021.

The FHFA’s single-family real estate (REO) moratorium was set to expire on July 31, 2021 and applies to properties acquired by mortgage giants Fannie Mae or Freddie Mac through foreclosure or deed in lieu. foreclosure transactions or FHA backed properties.

“The pandemic continues to have a disproportionate impact on the ability of Americans to meet their monthly rent or mortgage payments,” FHFA Acting Director Sandra Thompson said in a statement. “Today’s extension of the moratorium on deportations protects particularly vulnerable Americans who otherwise risk losing a place to live.”

Currently, more than seven million tenants were behind on their rent in May, and around half of those tenants face eviction in the coming months, according to US Census Bureau data. If you are having similar financial difficulties, you can visit Credible to compare personal loan options, for example, to help you catch up on your payments.

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Extending aid to those most affected by economic shutdowns

Extensions are part of President Joe Biden’s announcement that federal agencies will use their authority to extend their respective eviction moratoria until the end of September, which will provide continued protection to households living in federally insured single-family properties. The White House is now calling on Congress to expand the Centers for Disease Control (CDC) current eviction prevention efforts to all Americans, as Congress is expected to authorize any new eviction bans due to a new one. Supreme Court judgment that the CDC does not have the authority.

But Democrats are struggling to get the necessary votes as many moderate Democrats oppose the extension. Despite the Supreme Court ruling, House Speaker Nancy Pelosi is calling on the CDC to extend the moratorium, just saying “I think the CDC can do it.”

“While there are programs in place in various states and principalities to provide assistance to tenants, either in terms of financial support or in the eviction process, once the moratorium expires, there are few protections for tenants unable to pay, ”said Matthew Kramer. , a partner at Weinberg Wheeler Hudgins Gunn & Dial, which provides outside advice to landlords and tenants on a wide range of real estate transactions and leases.

If you are considering a possible eviction in the coming months and are struggling to pay your mortgage or rent, visit Credible to see your financial options. For example, you could get a low-interest personal loan to make up for missed payments.

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What options are available?

After the moratorium expires, many tenants will have few options to catch up on their payments and avoid eviction, Kramer said.

“Tenants who must vacate their accommodation may attempt to apply for financial assistance under a state or city program or use, in court or out of court, a resolution process that likely requires the consent of the owner, ”he said. “Beyond those options, they really don’t have a lot of protections other than staying home as long as possible until the eviction is over, the length of which varies by state.”

However, there are still several other options available that tenants and landlords can look into in order to make up for their missed payments or to ensure that they are able to make payments in the future:

1. Refinance your mortgage: If homeowners are having trouble making their payments, the federal government has several modification options to help them. reduce their payments by up to 25%. They can also choose to refinance their mortgage, saving hundreds on their monthly payment due to low interest rates and other options such as removing mortgage loan insurance. Visit Credible to compare mortgage rates from multiple lenders at once and choose the one that’s right for you.

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2. Ask for help: The Consumer Financial Protection Bureau (CFPB) strives to help tenants and has a website where they and landlords can make a request to receive money funded by the US Department of the Treasury’s Emergency Rental Assistance Program.

These funds will be distributed by state and local organizations and can be used to help pay rent, utility bills, and moving expenses. The new CFPB rental aid search tool helps tenants find help near them.

3. Take out a personal loan: While there are many options available for homeowners to consider, renters face a more difficult challenge. If you are a tenant and have exhausted other options like rent assistance, you may want to consider taking out a personal loan when interest rates are at their lowest.

When it comes to purchasing a personal loan, Credible can do the heavy lifting for you. With a single click, you can view multiple lenders, rates and terms in one place. Get started with your personal loan purchases today.

Wrap it up

Those who have been evicted and are looking for a place to live face a tough market. However, demand could stimulate the creation of more affordable housing.

“It’s a tough market right now to buy and rent,” Kramer said. “There are very few stocks and major cities across the country are facing shortages of housing options, especially affordable housing options. It is a supply and demand problem that will perhaps stimulate more affordable housing projects, etc.

For now, many will have more time to consider their options after the Biden administration’s decision to extend the moratorium on evictions until September.

Have a finance-related question, but don’t know who to ask? Email the Credible Money Expert at [email protected] and your question could be answered by Credible in our Money Expert column.


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