(Photo by MANDEL NGAN/AFP via Getty Images)
- The White House announced the extension of the moratorium on home foreclosures through June 30.
- The extension will help the 10 million Americans who fell behind on mortgage payments during COVID-19.
- Biden called on Congress to pass his stimulus to give more relief to renters and homeowners.
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On President’s Day, just over 10 million homeowners got an extra benefit when President Joe Biden extended the moratorium on home foreclosures through June 30, intended to address the housing affordability crisis and aid homeowners struggling during COVID-19.
The moratorium on foreclosures, in place since last March under President Donald Trump, was previously extended in Biden’s series of executive actions on his first day in office.
With the ban set to expire next month, the White House said in a statement that the departments of Housing and Urban Development, Urban Affairs, and Agriculture are extending the ban another three months to aid the 10 million homeowners that fell behind on mortgage payments during the pandemic.
“President Biden is committed to protecting homeownership and housing stability as America begins to turn a painful crisis into a robust recovery,” the statement said. “Today’s extended forbearance and foreclosure programs are an important step towards building stronger and more equitable communities.”
Other relief in real estate
In addition to extending the foreclosure moratorium, the president will also extend the mortgage payment forbearance enrollment window through June 30, along with providing up to six months of additional mortgage payment forbearance for borrowers who entered forbearance on or before June 30.
Aid to renters was also included in Biden's pandemic relief executive actions. According to the Center on Budget and Policy Priorities, one in five renters is behind on rent, and to address this issue, Biden extended the moratorium on evictions through March on his first day.
In extending these programs, Biden noted that even more relief for homeowners and renters is included in his $2 trillion stimulus plan, including the Homeowners Assistance Fund, which provides states with $10 billion to help struggling homeowners. The president called on Congress to pass the plan to provide needed financial relief.
"This relief is critical for homeowners with mortgages in the private market who are not able to take advantage of today's actions and may face longer-term challenges."
—President Biden (@POTUS) February 12, 2021
Speaker of the House Nancy Pelosi said she aims at getting the pandemic relief package passed by the end of February so Biden can sign it prior to the expiration of unemployment benefits on March 14, which were extended in the December stimulus package.