WASHINGTON (AP) – President Joe Biden extends a home seizure ban until June 30 to help homeowners struggling during the coronavirus pandemic.
The moratorium on foreclosure sales of federally guaranteed mortgages expired on March 31. On his first day in office, Biden had extended the moratorium from January 31. Census Bureau figures show that nearly 12% of homeowners with mortgages were late with their payments.
The White House says coordinated actions announced Tuesday by the Ministries of Housing and Urban Development, Veterans Affairs and Agriculture will also be extended until June 30, the enrollment window for borrowers seeking to request payment of their mortgage – a pause or reduction of payments – and will grant up to six additional months of grace for borrowers who were granted on or before June 30 last year.
The White House says more than 10 million homeowners are behind on mortgage payments and Biden’s actions are designed to keep people in their homes amid “an affordability crisis” triggered by the pandemic. It says that “homeowners will receive urgently needed assistance as we face this unprecedented national emergency.”
Biden’s government says expanding its tolerance policy will “provide critical support to homeowners of color, who make up a disproportionate proportion of borrowers” who are struggling to pay their loans due to the hardships associated with the pandemic.
The actions announced Tuesday do not include a federal moratorium until March 31 on evictions of tenants in rent arrears.