Biden Gives Homeowners Until June to Defer Mortgage Payments
The CARES Act, passed early in the pandemic, included a forbearance on mortgages. Those who had trouble meeting their mortgages were able to apply to their servicer for relief from payment obligations. (Those who receive a forbearance will still be required to pay principal and interest at a later time.)
An estimated 2.7 million have signed up for mortgage relief. Another 11 million have mortgages that qualify for the program, should they need it.
The initial forbearance lasted through the end of December. On his first day in office, President Joe Biden signed an executive order that extended the program to March 31. On Tuesday, he signed an order extending the program to the end of June. By that point, the economy should be recovering – in theory.
The Consumer Financial Protection Bureau maintains details about the program on its website.
The White House is also asking for quick passage of the $1.9 trillion stimulus package, in part because of its support for state, tribal and local governments. Many localities have mortgage and utility assistance programs that have been hurt by the pandemic-related loss of tax revenue. Demand for these programs is likely to increase given the effects of the current polar vortex.
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