What is happening with Foreclosures?
The new CFPB rule is changing the process of foreclosure slightly as the moratorium end and the government is trying to avoid a massive wave of foreclosures.
Foreclosure moratoriums end on July 31, 2021. The Consumer Financial Protection Bureau has enacted a new mortgage servicing rule, which goes into effect on August 31, 2021. This new rule is temporary and expires December 31, 2021. After that, it is back to pre-pandemic business as usual in the world of foreclosure and debt.
The general rule has always been that a mortgage cannot be referred to foreclosure unless it has become more than 120 days delinquent. The new rule extends that slightly by requiring additional options to be offered to a delinquent borrower, including streamlined modifications and other relief. If the borrower does not respond or the property is abandoned the foreclosure process can just start. If the borrower was more than 120 days delinquent before March 1, 2020, these provisions do not apply.
Here’s my latest video discussing what relief there is.
If you have questions or need to figure out how to deal with an issue like this that you are dealing with, please contact me.