Aug 1, 2021 - Politics & Policy

Homeowners face evictions, piles of deferred debt after foreclosure moratorium expired

Houses
Houses in the Fairlawn neighborhood in Washington, D.C. on June 14. Photo: Craig Hudson for The Washington Post via Getty Images

Millions of homeowners are delinquent on their mortgage, and after the foreclosure moratorium expired Saturday, many of them face the threat of eviction, the Washington Post reports.

Why it matters: About 1.8 million homeowners are still enrolled in forbearance, a provision that allowed monthly mortgage payments to be deferred, as the program ends next month.

  • Without the protections of the federal ban on foreclosures, individuals who are still in forbearance may be evicted or displaced if selling is the only option.
  • An estimated 1 in 10 borrowers in forbearance will not have enough equity to sell, per the Post.

The big picture: House Democratic leaders did not secure enough votes to pass legislation that would have extended the foreclosure moratorium last Friday.

  • After the House adjourned, three U.S. agencies extended their federal foreclosure-related eviction moratoria to protect renters.

What they're saying: “For them to allow us to do the forbearance, it was a blessing,” Laura Landry, a New Orleans homeowner, told the Post.

  • "But then when you think you got to make all those payments all at once again eventually, that’s when reality wakes you up," she continued.
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