President Biden has issued an extension of protections against foreclosure. This protection will extend through June 30, 2021. While this protection is good as far as it goes, it is only temporary protection from foreclosure, and it only protects homeowners who have federally-backed mortgages. Approximately 70% of mortgages in the U.S. are federally-backed, that leaves the remaining 30% of homeowners without any foreclosure protection from the federal government.
Also very important is that foreclosure protection does nothing for renters, 20% of whom in the U.S. are behind on their rent payments (approximately twice the normal percentage). It’s a good thing to protect homeowners from foreclosure during this pandemic and its economic hardships, but renters are generally far more in need of financial help and more likely to find themselves homeless if they get evicted than are homeowners. The good news is that California passed protections against eviction of renters, the latest law prohibiting evictions through June 30, 2021 so long as tenants provide their landlords with a declaration that their financial problems are COVID-related, and so long as they pay 25% of the total rent due by June 30.
If you are facing foreclosure, contact a bankruptcy attorney today. You might have some temporary legal protection against foreclosure, but this will only last so long. It’s better to plan in advance for things like applying for a loan modification or repaying the mortgage arrearage than it is to wait until your home is about to be foreclosed.