WASHINGTON (AP) – President Joe Biden is extending the housing foreclosure ban until June 30 to help landowners struggling during the coronavirus pandemic.
The moratorium on federal foreclosures guaranteed by the federal government had been set to expire on March 31. On his first day in office, Biden extended the moratorium from January 31. The Census Bureau figures show that almost 12% of homeowners with mortgages were behind on their payments.
The White House says that the coordinated actions announced on Tuesday by the Departments of Housing and Urban Development, Veterans Affairs and Agriculture will also extend the registration window until June 30 for borrowers who want to apply for mortgage repayment – a break or reduction in payments – and will provide up to six additional months of tolerance for borrowers who entered with tolerance on or before June 30 last year.
The White House says more than 10 million homeowners are behind on mortgage payments and that Biden’s actions are to help keep people in their homes in the midst of a “housing crisis” triggered by the pandemic. He says that “homeowners will receive the necessary relief urgently, as we face this unprecedented national emergency”
The Biden government says the extension of indulgence policies “will provide critical support to black homeowners, who represent a disproportionate share of borrowers” who are having trouble repaying their loans because of difficulties related to the pandemic.
The actions announced on Tuesday do not address a federal moratorium until March 31 on evictions of tenants who have not paid their rent.