Financial protections implemented by the federal government to keep households afloat during COVID-19 are soon coming to an end. Here is a run down:
1. The mortgage foreclosure moratorium ends on July 31, 2021 and current indications are that it will not be extended. The Consumer Financial Protection Bureau has put in place some rules to help homeowners behind on payments. They apply to homeowners more than 120 days behind on their mortgage. They are:
(a) Before the lender can start foreclosure, a loss mitigation application must be completed and submitted by the homeowner and reviewed by the loan servicer. If borrowers still can't afford payments after exhausting the foreclosure avoidance options, the foreclosure will proceed. Note: I am not optimistic that servicers will follow this rule.
(b) Loan servicers must confirm a property is abandoned before starting foreclosure proceedings. Note: Not sure how this helps.
(c) Loan servicers must make reasonable effort to contact homeowners before starting a foreclosure. Homeowner's more than 120 days behind that are unresponsive for more than 90 days will have foreclosures begin against them. Note: Don't count on a servicer to follow this rule. A couple of spam calls will be the extent of their "reasonable effort."
2. While courts have begun allowing evictions in Florida the Federal Eviction Moratorium ends on July 31.
Federal benefits end on September 6, 2021, but Florida blocked people from collecting federal benefits on June 26, 2021.
The 15% increase in maximum benefits for the Supplemental Nutrition Assistance Program (SNAP) ends on September 30, 2021.
The federal student loan payment pause which has been in place the last 16 months, is set to expire on October 1, 2021. Note: Navient told me I had to resume payments months ago.
Things may start to become very stressful for many Florida homeowners and consumers. Don't let the stress get to you. Call me at (813) 282-9330 and we will figure out a plan for you.