The Department of Agriculture is extending its moratorium on evictions and foreclosures on home loans that might be lagging in payments due to the COVID-19 pandemic.
The moratoriums have been extended through June 30, 2021, USDA announced in a release Tuesday. The policy applies to the department’s Single Family Housing Direct and Guaranteed loans issued through the Rural Development Office.
“USDA recognizes that the COVID-19 pandemic has triggered an almost unprecedented housing affordability crisis in the United States,” Justin Maxson, USDA’s deputy undersecretary for Rural Development, said. “That’s why USDA is taking this important action today to extend relief to the hundreds of thousands of individuals and families holding USDA Single Family Housing loans.”
Maxson also noted the need to address “more robust and aggressive actions” through the Biden administration’s $1.9 trillion COVID-19 relief measure currently making its way through Congress.
The moratorium does not apply to vacant or abandoned properties. Lenders are to outline “potential solutions that may be available at the end of the forbearance period and explain to borrowers that a lump sum payment of the arrearage will not be required,” USDA noted. No fees, penalties, or interest should be accrued during the forbearance period.
The move extends an initial moratorium announced on the first day of the Biden administration.
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