Mortgage Foreclosure Relief During COVID

As the coronavirus pandemic drags on and unemployment remains high, many homeowners are struggling to pay their mortgages and are worried about losing their homes through foreclosure. Fortunately, lawmakers have responded to the dire situation by implementing several mortgage relief options.

Approximately 70 percent of all mortgages are federally backed, either by Fannie Mae, Freddie Mac, the Federal Housing Authority (FHA) or the Dept. of Veterans Affairs (VA). There is a moratorium until February 28, 2021 on foreclosures of federally backed mortgages. This moratorium has already been extended several times and, with no end to the pandemic in sight, will likely be extended again. However, the moratorium only protects owners of single-family homes. Owners of multi-family housing complexes could conceivably find themselves faced with foreclosure if they cannot cover the mortgage.

For homeowners who do not have federally backed mortgages, the Connecticut Housing Finance Authority (CHFA) has created a separate homeowner assistance program. On January 4, the CHFA instructed all mortgage servicers to avoid foreclosing on properties until February 28, 2021. This aligns with the federal moratorium and like the federal moratorium may be extended again due to the continuing COVID-19 crisis.

We encourage everyone to monitor the State of Connecticut’s official website for the most up-to-date information on mortgage and foreclosure relief. Also, be sure to check if your mortgage loan is federally guaranteed. If your servicer or lender threatens to begin foreclosure proceedings during the pandemic, they are likely in violation of either federal or state foreclosure prevention orders. If you are faced with a threat of foreclosure, you should immediately reach out to an experienced Connecticut real estate and foreclosure defense lawyer who can intercede in your defense.

At Gesmonde, Pietrosimone & Sgrignari, L.L.C. our attorneys are monitoring the ever-changing rules and regulations on foreclosure during the recession caused by COVID-19. If you are a homeowner in need of assistance regarding any aspect of mortgage relief or foreclosure defense, call us at 203-745-0942 or contact us online to arrange a meeting. We have offices in Hamden and East Haven. We can arrange virtual meetings as needed to help keep everyone safe and healthy.